Reinsurance/CAT bonds as diversifier

[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?

[barrett]

"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?

[boglerdude]

https://www.advisorperspectives.com/art ... portfolios

Waiting for Vanguard get into this

[dualstow]

@Barrett: ha!