Tag Archives: portfolio diversification

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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Gold Outperforms Technology Year-To-Date

The holiday-shortened week marked a significant change in asset performance with gold outperforming technology on a year-to-date basis. This impacts diversified portfolios.

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ETF Correlations

The anti-correlation between SPY and TLT persists while the correlation between SPY and UUP is now neutral.

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Follow the Money, or Not?

Stock indexes are flat this year so far but biotech, gold, real estate and bonds are already generating high returns. Investors are diversifying but risks are increasing.

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State of Major US Stock Indexes and Key Proxy ETFs

Distances from the 200-day moving average and from a 250-day high of major stock indexes. RSI(14) and YTD return of key proxy ETFs.

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Low Correlations Offer Diversification Opportunities And High Risks in 2014

The low correlations between stocks and bonds, currencies, precious metals and commodities offer opportunities for diversification in 2014 but high risks lurk in case these markets couple again. 

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