In Tony Robbins book, Money: Master the Game. Tony interviews Ray Dalio one of (if not) the world's success hedge fund manager.
Dalio says the trick to successful investing is making many uncorrelated bets.
I started investing in December after selling some property and naively though I was making uncorrelated bets.
It has only been 4 months but there seems to be a pattern emerging.
The initial idea was that these bets were all uncorrelated. Boy was I wrong.
Using index funds and ETF's... Stocks. Bonds. REIT's. Diversification by sectors (tech, health care, finance, energy etc) Diversification by borders (us, international, emerging etc) Diversification by size (small cap, mid cap, large etc)
Lately I have seen that there seems to the least correlation between stocks (in general), bonds and REITs.
I was asked to make 8 uncorrelated investing bets I would say. Sorry but no I can only make 3.
Stocks, bonds and REIT's.
If you were asked to make 8 uncorrelated investing bets, what would your answer be?
Submitted March 26, 2018 at 11:49AM by Skuggasveinn https://ift.tt/2pG7HOT
