Corona Del Mar, CA
Howdy ,
Wow, what an insane run in an unsung hero we've had in ETF pair trading.
People own a fair amount of it, but they rarely trade it (total mistake).
It has had six months in a row of profitable trading since March...
...while the asset itself lost virtually every month.
+38% vs -12%. What a difference, right?
Can you guess what it is?
Gold!
That might surprise you because this precious metal has been tanking.
But there's an inverse ETF (GLL) that has been performing extremely well as the US Dollar has taken off.
This is precisely why I love the long/inverse nature of ETF pair trading.
While traders have been drinking away their sorrows as the market tanked...
...and biting their nails on what this week's decline means...
...this ETF pair has taken up the slack and then some.
Ray Dalio figured out several decades ago that combining stocks, bonds, gold, and commodities created smoother results for his fund.
I'm sure that if his fund wasn't worth so many billions, he'd also add inverse ETFs and a little Bitcoin to the mix.
So when you're sketching out your roadmap for beating "the market" I strongly suggest that you trade at least a couple asset classes besides stocks.
You'll save some fungolas on your Pepto Bismol bill when stocks get hairy.
And you could enjoy more positive months...80% vs 66%.
And lower drawdowns like: 10.6% vs 56%.
Hope that helps!
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