5min chapter

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What Happens after Bonds Crash? (plus Reading with Aydin Mirzaee) (EP.199)

The Rational Reminder Podcast

CHAPTER

The Benefits of Diversification

Stocks and bonds have individually, on several occasions throughout history, lost more than 70 % in real terms. Even with less volatility, it's not out of the ordinary to have long periods of negative oror flat real returns. Because they're negatively correlated, it's the perfect portfolio. You've got triple leverage. It's basically free money. When a strategy like that blows up, crat real hard. And as an asi class, i answered nemal this morning. It's for the e t f all star's article that money sends os.

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