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tags: potential/long-short ...

Long $RSP, short $SPY

The theory of this is that with SPY one is long the over-valued stuff, and short the low-value stuff. This was discussed in a recent Market Huddle podcast with Rob Arnott. Arnott offers a service which goes beyond this simple two-ETF strategy, and is based on creating a portfolio which has economic footprint weightings (e.g. revenue or operating profits or dividends) rather than market cap.. The idea, again, is to position for mean reversion to normal valuations.

Muir thinks it's one of the easiest ways for retail investors to outperform institutional ones, because $RSP is too small to be punted by the big boys.