Gone Fishin' Portfolio

I've been doing some research and found the Gone Fishin' Portfolio to be the simplest way to invest to maximize returns and minimize risk.

The person who originally created the model won the Nobel Prize for it. Here's a link: http://www.gonefishinportfolio.com/



  • Yes:

    (1) Correlations between asset classes depend entirely on the given period and are worthless. In the 80's, sovereign bonds were slammed at the same time as stocks. In other crises, stocks are slammed with commodities. Emerging equity markets sometimes correlate with developed markets, sometimes not, depending on the period.

    (2) Volatility is not "bad". Volatility, if positive (meaning positive returns), should rather be welcomed. I cite: "The reality is that past security price volatility does not reliably predict future investment performance (or even future volatility) and therefore is a poor measure of risk." Volatility is a good thing because it creates opportunities and bargains. Risk is not something you quantify by looking at the historical deviation of the average mean.
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