BrotherMaynard

ConocoPhillips: More Than Just a Great Stock

"In terms of portfolio diversification, it is academically and statistically proven that the DJ-AGI is quite beneficial to any portfolio/investor"

So were asset backed securities and CDSes. My point being, everything looks good on paper, simply because on paper, its doesnt interact with anything. As we saw during 2008 -- all asset class correlations converge at 1 during a crisis. Corporate bonds tanked, commodities tanked, stocks tanked, real estate tanked...you name it and it tanked. So just a word of caution...just diversifying doesn't do you any good. Correlations can be broken or reversed, sometimes permanently, without a moments notice. What should you do? I'm not 100% sure, but just because something is empirically tested doesn't mean that the statistical sample is a complete descriptor of the statistical population.