Replies to post #45271 on A.I.M. Users Bulletin Board (AIMUSERS)

[karw]

"insurance policy"

Very nice words, this means protection. I like it. I think Lichello was talking somewhere about "call options". It gives more meaning to "cash".

It trigerred the following thought, maybe use a bit of cash to buy some long term put options on some index. Maybe use some Vealie money for this. Maybe someone already modelled this. Taleb does something like this, he earned a lot of money with his put options in his hedge fund during the march 2020 crash.

[Firebird400]

Hi Tom, Update "Insurance Policy",
YTD +13.46%... 74% stock... 26% Cash... Few pennies away from another sell this morning... Would like to book another sell today and raise my cash(insurance policy) up some more heading into May... Nearing, within striking distance now of my all time high... Awesome feeling turning this around from last year for sure... Best regards, Ken ... "Profit
from your ideas"

[ls7550]

Hi Tom.

Can't post to that board, so I'll just drop it here instead

Precious metal do buy
When the Dow/Gold is high
I tell no lie.

On a per decade rotation, starting from 1972 in the absence of earlier years data, buying either stock or gold according to the decade start Dow/gold ratio you might have opted to hold gold 1972 to 1979
Stocks 1980 to 1989 and again 1990 to 1999
Gold 2000 to 2009
Stocks 2010 2019

For a US investor so doing, nominal total returns 18.4% annualised
(14.1% real (after inflation))
versus 10.6% for all stock (6.6% real).

UK/British Pound adjusted 20% annualised (13.9% real).

Start of 2020's Dow/Gold indicates ... gold.

Clive.