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Please share an example of something that has this property.
by pcdoodle 6y ago
Please share an example of something that has this property.
- jmalicki 6y agoFor a long time timber (as in, owning a forest and letting people log it occasionally) has been one of the favorites of large endowments and hedge funds. https://investmentsandwealth.org/getattachment/cc0f7589-7411-41d8-82c2-f287892ac2da/IWM15SepOct-SeeingForestForTrees.pdf https://investmentsandwealth.org/getattachment/cc0f7589-7411...
- fredophile 6y agoThere aren't many examples. Volatility is the best one I'm aware of. However, if you're regularly buying volatility to hedge your stock exposure you're going to lose a lot of money that way.
- reducesuffering 6y agoLong term US bonds are definitely the most prominent example for the last 40 years. Past 100 years though, not really. Check the ETF TLT compared to total US stock market, VTI, on https://www.portfoliovisualizer.com/backtest-portfolio https://www.portfoliovisualizer.com/backtest-portfolio or the asset classes on https://www.portfoliovisualizer.com/backtest-asset-class-allocation https://www.portfoliovisualizer.com/backtest-asset-class-all... Their negative correlation zig-zag is remarkable the past few decades. Some research postulates that in a decreasing interest rate environment (past 40 years), they’re negatively correlated, while in a rising rate environment they’re positively correlated, leading to the past 100 years minimal (almost 0) long term correlation.