The "Stock Trading Riches" Investment System

[Toofuzzy]

Hi wje3

>>>>2. Do you think the drawdown could have been lessened if you had non correlated assets in your portfolio? <<<

In 2003 and 2008 the only thing that was non correlated with everything else was LONG TERM TREASUARY BONDS (think TLT etc)

I owned CHI thinking that would be bond like and it wasn't.

Rates are too low to buy TLT now but after rates go up and there is a first Fed rate cut or interest rates invert I would reccomend putting a % = to your age in to long bonds. You can then trade them, buying more if they go down and selling a little as they go up, just like the other securities you hold.

In the meantime the only other non correlated security you can trust to stay that way is CASH.

Toofuzzy