4min chapter

The Macro Trading Floor cover image

A Macro Trader Playbook with Jim Leitner

The Macro Trading Floor

CHAPTER

The Pain Points in a Diversified Portfolio

The 6040 portfolio gym did very well both in terms of returns and in terms of analyze volatility. But what really struck me the most was what about drawdowns? I mean the 6040 portfolio took drawdowns of like 30 40 70% even in the 30s. So it doesn't always work as a truly diversified portfolio especially when things become more about the rest of the world than about the US More about inflationary pressures more about correlations Converging to one when you don't want them to converge to one.

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