Category Archives: Asset Allocation

How Risky Is The 60/40 Portfolio?

The correlation between the 60/40 strategic allocation and the equity market in the last 30 years is close to 0.9. Actually, portfolio risk, as measured by maximum drawdown, has only been low during strong equity market uptrends.

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Forex As An Asset Class

Using a forex strategy in tactical asset allocation offers potential of better diversification and improved performance during bear equity markets but any benefits from this allocation scheme must be weighed against known and unknown risks.

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Investing in European Stocks is a Forex Bet

Many financial advisers think that European stocks will outperform U.S. stocks. Evidently, they are talking about a forex bet.

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The Stock Market Is For Speculation, Not an Income Source

Everyone in financial media is now talking about Vanguard and how it controls more than 80% of the money invested in index funds. Have investors forgotten the recent brutality of the stock market or are they just convinced that another … Continue reading

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Hedge Funds Are Doing Well

Despite record outflows in 2016 and even a dose of the usual negative publicity, hedge funds have done well and the industry is looking forward to more growth. Based on performance data since 1977, hedge funds have outperformed the S&P … Continue reading

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Diversified Portfolio Performance in 2016

The Price Action Lab Diversified portfolio ended the year with a gain of 9% and ranked second best among 29 well-known portfolios.

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