Asset Allocation Strategies

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Performance comparison of HDGE, short S+P ETFs, and long Treasury ETFs during the big December swoon -


S+P 500 (SPX) - down 16%

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HDGE - up 19%

1X Short S+P (SH) - up 19%

2X Short S+P (SDS) - up 40%

3X Short S+P (SPXS) - up 69%

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1X Long 20+ year Treasuries (TLT) - up 8%

3X Long 20+ year Treasuries (TMF) - up 22%

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So while the Treasury approach won't give you the best 'bang for the buck' for short term trading, as an asset allocation tool to reduce risk and overall volatility, Treasuries work well.