HERE’S HOW TO UNDERSTAND — AND PROSPER FROM — THE STOCK MARKET’S WILD MOVES $VXX $GLD $GDX $SLV $QQQ $SPY $XIV
Rising interest rates, the specter of inflation and stocks’ overvaluation are all valid, fundamental concerns facing investors today.
But is that the full story?
Before the start of the swoon Friday, nine of the 10 categories of inputs to The Arora Report Global Multi Asset Allocation Model were deteriorating. This is the reason we reiterated to subscribers to hold 19%-29% in cash or Treasury bills, short- to medium-term hedges of 15%-25% and very short-term hedges of 15%. That way, those who wanted to take less risk and were hedging were protecting 69% of their portfolio.
Those who did not hedge did not have as much protection but should have been holding cash more than 29%.… Please click here or the title below to read more.
February 6, 2018