The 10% Solution
Last time, I asked you to think back to last October. Let’s try that risk management exercise again, with slightly different parameters. Imagine you or someone you know had $100,000 to put to work, but was risk averse. In a worst case scenario, such as a major market correction, they were unwilling to risk a decline of more than 10%. What approach would you have taken?
Maybe you would have a conservative fixed income fund such as Hussman Strategic Total Return [HSTRX). If so you would have been down about 0.85% from October 19th to April 19th.
Let’s look at what Portfolio Armor would have presented you with then, and see how it did over the next 6 months.
Portfolio Armor’s Risk Management Approach On October 19th
This is the…
