Thus, it’s our goal to do as well as the market when it does well and better than the market when it does poorly. At first blush that may sound like a modest goal, but it’s really quite ambitious.
In order to stay up with the market when it does well, a portfolio has to incorporate good mea sures of beta and correlation with the market. But if we’re aided by beta and correlation on the way up, shouldn’t they be expected to hurt us on the way down?
52
7 reads
CURATED FROM
IDEAS CURATED BY
Similar ideas
In good years in the market, it’s good enough to be average. Everyone makes money in the good years, and I have yet to hear anyone explain convincingly why it’s important to beat the market when the market does well. No, in the good years average is good enough.
There is a time, however, wh...
People with jobs are more likely to spend money, and it should follow that employment drives the economy. But when the economy goes sour, companies fire workers. It should follow that the economy drives employment. Both contradictory statements are true.
The market finally bottoms out. But...
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates