Small cap value seems to be reflecting the animal spirits
What's least correlated, emerging market value?
Anybody rebalance between them?
edit1: Some volatile funds in here
https://www.researchaffiliates.com/en_u ... index.html
But how does currency factor in
Max volatility (while capturing growth)
Moderator: Global Moderator
-
- Executive Member
- Posts: 1317
- Joined: Wed Aug 10, 2016 1:40 am
- Contact:
- blue_ruin17
- Executive Member
- Posts: 153
- Joined: Sat Aug 13, 2016 11:16 pm
- Location: New Brunswick, Canada
Re: Max volatility (while capturing growth)
Everyone and their grandma tilts small-value, nowadays. The historic SV "premium" may therefore prove to have been an overcrowded trade looking back 10, 20 years from now.
EM's have potential for huge gains because they have potential for huge busts and drawdowns. It is commonplace to predict that "China is the future", for example, but there is some deep systemic risks built into investing in a state economy that's run by the corrupt, decadent, inefficient, antiquated CCP. Will China be such a great place for your capital if 100 million Chinese peasant-slaves decide to host a revolution of their own? Maybe not.
EM's have potential for huge gains because they have potential for huge busts and drawdowns. It is commonplace to predict that "China is the future", for example, but there is some deep systemic risks built into investing in a state economy that's run by the corrupt, decadent, inefficient, antiquated CCP. Will China be such a great place for your capital if 100 million Chinese peasant-slaves decide to host a revolution of their own? Maybe not.
STAT PERPETUS PORTFOLIO DUM VOLVITUR ORBIS
Amazon: Investing Equanimity: The Logic & Wisdom of the Permanent Portfolio
Amazon: Investing Equanimity: The Logic & Wisdom of the Permanent Portfolio