本文发表在 rolia.net 枫下论坛( This article is original published in http://seekingalpha.com/article/95675-no-place-to-hide-for-equity-in-today-s-market )
Lehman's (LEH) bankruptcy filing sent S&P 500 down more than 4.7% yesterday. Stocks posted big losses in markets across almost all sectors and much of the globe.
As you can see from data I compiled from the Yahoo Financial site, all major equity ETFs with trading volume over 1 million are down, anywhere from –0.26% for iShares MSCI Malaysia Index Fund (EWM) to as high as –11.94% for Oil Service HOLDRS (OIH). Diversity doesn’t seem to work and there is no place to hide for equity in today’s market.
Fortunately, an old textbook concept still works: A portfolio with a mixture of stocks and bonds. The only major ETFs which were up yesterday were bonds, with iShares Trust Lehman 20+ year Treas Bond (TLT) up as much as 3.08%, along with Gold (GLD).
To truly hedge your portfolio, maybe investors should put 60% in bond, and 40% in equity, instead of traditionally 60% stock, 40% bond. The only free lunch for investors is “diversity”, but not within equity itself, as it becomes more and more correlated, but between equity and bonds.更多精彩文章及讨论，请光临枫下论坛 rolia.net
Lehman's (LEH) bankruptcy filing sent S&P 500 down more than 4.7% yesterday. Stocks posted big losses in markets across almost all sectors and much of the globe.
As you can see from data I compiled from the Yahoo Financial site, all major equity ETFs with trading volume over 1 million are down, anywhere from –0.26% for iShares MSCI Malaysia Index Fund (EWM) to as high as –11.94% for Oil Service HOLDRS (OIH). Diversity doesn’t seem to work and there is no place to hide for equity in today’s market.
Fortunately, an old textbook concept still works: A portfolio with a mixture of stocks and bonds. The only major ETFs which were up yesterday were bonds, with iShares Trust Lehman 20+ year Treas Bond (TLT) up as much as 3.08%, along with Gold (GLD).
To truly hedge your portfolio, maybe investors should put 60% in bond, and 40% in equity, instead of traditionally 60% stock, 40% bond. The only free lunch for investors is “diversity”, but not within equity itself, as it becomes more and more correlated, but between equity and bonds.更多精彩文章及讨论，请光临枫下论坛 rolia.net