If you're interested in a long-term hedge, and all the 30% down-days are eventually offset by a soild long-term up-trend: yes, sure, why not? If asset A reliab

If you're interested in a long-term hedge, and all the 30% down-days are eventually offset by a soild long-term up-trend: yes, sure, why not? If asset A reliably loses 4% of its value per year, in a totally-predictable straight-line, and asset B has wild up- and down-swings, but over years reliably delivers 25% appreciation per year - asset B is better, unless you'll be forced to urgently sell at unpredictable times. (And if you can find a basket of uncorrelated B-like assets, all the better!)