If it’s Broke, Fix it: Rethinking the Classic 60/40 Allocation Strategy by Using Volatility as an Asset Class
IBKR Podcasts
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How Big Is Your Quote Unquote Volatility Portfolio?
At any stock price above $85, there is zero equity exposure in this model. The volatility of those returns because of the width of those goalposts is very low. As you go further out in time, you will actually take in more money, but your annualized rate will be lower.
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