The Importance of Correlations

I was trying to come up with a different way of asking you a question just because I'm curious about your thought process here. No doubt that your approach works, you proved that for 40 years. But here's my thought experiment. You know, if we have a very simple portfolio, just consisting of two investment stocks and bonds, and let's just say that far can be said, today, the signal shows that you should be long postdocs and bonds. And then at some point, the signal changes in say the bond sectors,. And suddenly your long stocks put your short bonds. Now, to you, the risk is the same, right, because you size your position at entry.

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