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I wonder. Investing is all about relative yield. If stocks return 0.5% and treasuries return -4%, stocks will sustain higher ratios than the historical mean. B
by christophilus 7y ago
I wonder. Investing is all about relative yield. If stocks return 0.5% and treasuries return -4%, stocks will sustain higher ratios than the historical mean.
But I’m putting my money where your mouth is and betting on a correction.
- cm2187 7y agoTrue but you are taking say a -30% loss risk for only 0.5% expected return. I don’t think any risk manager is going to be very comfortable with that risk/reward.
- HPsquared 7y agoCash might have a similar risk (inflation).
- xvilka 7y agoJust use dynamic hedging, risks will be smaller.
- chii 7y ago> -30% loss risk for only 0.5% expected return. vs the alternative - a guaranteed loss of 4%? And the expectation of only 0.5% return is only going to be short term. Long term recovery is a good bet imho.