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Reinsurance/CAT bonds as diversifier

Posted: Mon Dec 12, 2016 12:32 am
by boglerdude
"Diversify, of course, as many factors or unique sources of risk as you can. Recently, for example, I’ve made significant investments in a reinsurance fund. It was never available before, but to me, it’s almost a perfect investment because it has equity like returns and clearly the risks of insurance are going to be uncorrelated with anything related to the risk of stocks and bonds." via http://mebfaber.com/2016/11/09/episode- ... dividends/

Anyone doing this?

Re: Reinsurance/CAT bonds as diversifier

Posted: Mon Dec 12, 2016 6:57 am
by barrett
boglerdude wrote:"Diversify, of course, as many factors or unique sources of risk as you can. Recently, for example, I’ve made significant investments in a reinsurance fund. It was never available before, but to me, it’s almost a perfect investment because it has equity like returns and clearly the risks of insurance are going to be uncorrelated with anything related to the risk of stocks and bonds." via http://mebfaber.com/2016/11/09/episode- ... dividends/

Anyone doing this?
No, not buying "reinsurance funds" or even bothering to figure out if I should. But I couldn't help posting this from the opening paragraph:

"Larry was among the first authors to publish a book that explained the science of investing in layman’s terms, “The Only Guide to a Winning Investment Strategy You’ll Ever Need.” He has since authored seven more books."

Seems to me that if someone gives a book that title, it should be the last one they publish, no?

Re: Reinsurance/CAT bonds as diversifier

Posted: Tue Apr 11, 2017 5:15 pm
by boglerdude

Re: Reinsurance/CAT bonds as diversifier

Posted: Tue Apr 11, 2017 5:21 pm
by dualstow
@Barrett: ha! O0