This is one of the most cogent well written short papers Ive read in awhile. You have the natural selection analogy right--markets are constantly changing, and market participants are constantly adapting, or not. Their is no single investment strategy for all markets.
I would add that there is no such thing as risk free assets. Treasuries are in a bubble, and cash erodes by the real rate of inflation (significantly above the CPI).
Every asset class has risk. The trick is finding the best risk reward tradeoff--and investing accordingly.
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This is one of the most cogent well written short papers Ive read in awhile. You have the natural selection analogy right--markets are constantly changing, and market participants are constantly adapting, or not. Their is no single investment strategy for all markets.
Oct 30 12:28 pm
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All Comments by E.D. Hart »The Myth of Uncorrelated Return [View article]
I would add that there is no such thing as risk free assets. Treasuries are in a bubble, and cash erodes by the real rate of inflation (significantly above the CPI).
Every asset class has risk. The trick is finding the best risk reward tradeoff--and investing accordingly.