lazytrader

Panic Driven Sector Rotation

Such correlation and a try to break out of it by spreading asset allocation across multiple non-tightly-correlated sectors and inverse funds is the method I'm using in my model portfolio at notiming.com/portfolio... . While trading such a portfolio is easy enough even given tax constraints such as wash-sales, the real question that comes up is what should trigger a re-optimization/re-bal... trade. I am still looking/testing various such trigger approaches, but would be interested to get your opinion.