Wisdom-Seeker

You Said It Was A Bear Market - Not Me

A close look at the chart for BXM (index behind PBP) doesn't fully support Roger's claim that it provides a significantly smoother ride. Peak-to-trough drawdowns in the various dips have been comparable to the S&P's drawdowns. (The BXM drawdowns look to be 75-100% of the size of the S&P's, though sometimes they are over more quickly.) And it's still very correlated to the S&P. As RN said, it's a valuable tool in the diversification arsenal but not a panacea!