Gyroscopic Investing

https://web.archive.org/web/20160324133 ... l-returns/

Look at the year 1994. What happened? Shouldn't the components move in different directions for diversification to work? And how can cash have negative returns?

helpme wrote: https://web.archive.org/web/20160324133 ... l-returns/

Look at the year 1994. What happened? Shouldn't the components move in different directions for diversification to work? And how can cash have negative returns?

When the system is shaking (like now), combined with CBs paper-slamming gold down, everything will go down.

All components can go down together for the next 50 years, why not? We just made this shit up, there is no law of nature that says they must move in opposite directions.

dutchtraffic wrote: We just made this **** up, there is no law of nature that says they must move in opposite directions.

That's the truth.

helpme wrote: https://web.archive.org/web/20160324133 ... l-returns/

Look at the year 1994. What happened? Shouldn't the components move in different directions for diversification to work? And how can cash have negative returns?

Fed raised rates in 1994 and caused a Bond Market Panic.  Orange County also filed for bankruptcy subsequently.  So it wsa a tight money scenario like 1981 and this year.

1994 was the only year since the 1980's that when the fed raised interst rates more than 1% intermediate term bonds had a loss .

How is this year a tight money scenario with rates still at zero?

it isn't  just the opposite in fact .

Expectations.

We're in a year like 1994, 1981 and 1969.