US stocks are favored during increasing dollar, else european or emerging countries. During commodity favored and risk taking envirnment emerging countires and commodity rich countries favored. Some of the risks associated with US favor portfolio when using equal weight top 10 assets based etfs (10% each) can be mitigated by 5% equal weight in top 20 etfs which includes small cap, mid, cap, emerging, brazil (commodity, BRIC) and short term treasury.
If you are relative strength fanatics, you can rank top 20 by relative strength and invest in top 3 to 5 etfs! When SHY is at top, shy away from market !!
U.S. Dollar: Still No Good Alternative [View article]
It works both ways.
1. Many currencies specially for emerging region lost their value against dollar in last decade or so, even after we factor in devaluation of dollar (within reasonable limit). No body can tell those countries are faired better by holding dollar reserves instead of their native currencies and reap additional benefit of diversification and risk mitigation.
2. In case of china, their US dollar reserves and their export business that help build those reserves are two sides of same coin. No body can tell where china would have been today without those exports and dollar rserves.
Buffett's Gamble: $40 Billion Bet on Volatility
[View article]
Buffet got close to 11.25% ($4.5B for $40B)premium for the insurance he sold. CDS for Berkshire comes out to be ($440K for $10M) 4.4%. Even if Buffest buys CDS for full amount for Berkshire default he makes 6.85 and gets off the hook ! :-)
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-ThinkRight
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If you are relative strength fanatics, you can rank top 20 by relative strength and invest in top 3 to 5 etfs! When SHY is at top, shy away from market !!
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U.S. Dollar: Still No Good Alternative [View article]
1. Many currencies specially for emerging region lost their value against dollar in last decade or so, even after we factor in devaluation of dollar (within reasonable limit). No body can tell those countries are faired better by holding dollar reserves instead of their native currencies and reap additional benefit of diversification and risk mitigation.
2. In case of china, their US dollar reserves and their export business that help build those reserves are two sides of same coin. No body can tell where china would have been today without those exports and dollar rserves.
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