John Doe1

All-ETF Portfolios vs. Strategic Mix of Stocks

No, I did read your "paper." In your "paper" you compared two groups of securities that appear to be portfolios and try to assert that an ALL ETF portfolio is not enough and you try to prove this by comparing a portfolio of highly correlated ETFs to a portfolio with 20% less of the same ETFs and add a stock that has uncorrelated return properties (which you apparently knew very well after reading your fancy description of the "spark spread" of EXC). Which is just plain misleading and intellectually dishonest especially given your "knowledge" of statistics.

Now, with your most recent remark you are asserting that you were only comparing some individual stocks to a "asymptotically maximum diversified fund." Are you serious? If you really wanted to sell some of your software why don't you suggest to readers to use the software to put together uncorrelated portfolios with ETFs which would be safer for the average investor or for the more experienced investor who may want to specialize in single stocks or areas of the stock market they could use your software to mine for this type of stocks? But, instead you created a confusing hypothetical scenerio between two portfolios that fails to satisfy basic logic.

To your aside, it appears you have a habit of making poor assumptions but at least it illustrates you are consistent. Simply because I am the only one silly enough to respond to this article does not mean that others have not read the article and simply decided they have more important things to do than to reveal someone's self serving, misleading article written to the average investor.