NO DooDahs

Choosing Your Portfolio Risk Tolerance

Nice elaboration on two of the seven risks I wrote about last week:
www.billakanodoodahs.c.../

Personally I believe that your "risk class 2," what I described as "Risk is Not Achieving My Benchmark," is the primary risk that we need to be concerned with when assembling a portfolio or designing an active strategy.

Of the regular contributors to SA, your work is probably THE most helpful to the sophisticated retail trader. Thanks.

What Is Diversification Worth?

Diversification is about allocating to different STRATEGIES, so long as said strategies have relatively low correlation to each other, and have positive expectancies.

"Buy and hold this asset class" is a STRATEGY.

One can get a diversification benefit by allocating money to different strategies in the same asset or asset class, i.e. short and long-term market timing techniques, Piotroski value and CANSLIM, etc.