Dollars and Jens
Tuesday, February 27, 2007
Diversifying Away the Crash
Diversification didn't help much today. I don't actually know this (actually, there's probably enough data online to conduct the research), but I have the strong impression that when the market really moves, especially when it really moves down, correlations tend toward one. In other words, you can hedge with short positions or put options or you can just tough it out.

Also from that blog, the following riddle:

Answer: Radio Shack and Questar.

Question: Which members of the S&P 500 went up today?

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