Good Point Robo!
I did not realise that this 20/80 should have rung the bell ref. de 20/80 Rule of this... what's his name again?...Picorni or something like that?
In this case the 20/80 Cash/Equity Ratio came from our friend Bernie Goldberg!
As to you question on the deflation hedge: Let me think:
Inflation means that the value of money deflates. That being so we need to inflate the money. With the up-trend of the Market(eventually) we can inflate our money by going heavily into stocks right now. So if you start an AIM at this time I would go for 20/80 Cash/Equity rather than 80/20.
So if you expect a deflationary period(money being inflated)then you might expect stock prices to drop? However, that will not be the case because the economy will get stronger as people will buy more(prices were dropping) and companies doing good business and see their sales increase. Stock prices will rise! So again, you should go heavily into stocks with a 20/80 Cash/Equity Ratio.
If by chance you have no money right now then you are plain out of luck. If by chance you are already 100% in stock then simply buy the Vortex Package with the Turbovest Module. You can borrow 60-70 % on your stock equity and make killing.
That's $ 59,75 please:-)
Conrad
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