| FEB 1993
Asset Allocation: Stocks, Bonds, Futures by K.D. Angle
Asset Allocation: Stocks, Bonds, Futures by K.D. Angle Investment survival depends on an investor's ability to adapt to the market. Is it possible to develop a strategy that performs under all conditions, whether inflation or deflation, recession or prosperity? K.D. Angle, futures portfolio manager and publisher of ""The Timing Device"" newsletter, says yes in this, his first STOCKS & COMMODITIES appearance. Take a look. Is it possible to develop an investment strategy that would perform under all economic conditions? After all, I reasoned, there are times when major investment vehicles would outperform others. I decided to find out if I could formulate such a strategy in a hypothetical portfolio. But first, I had to clarify the parameters involved by setting down the investment vehicles to use in the portfolio. When I refer to major investment vehicles, I specifically refer to: stocks; interest income such as Treasury bonds or Treasury bills; and a third investment class known as a trading vehicle, which includes markets that do not correlate either negatively or positively with stock or interest income vehicles. Markets such as currencies, financials or even basic commodities can add diversity to the overall portfolio. Under current conditions, most of the markets in the trading vehicle investment class can best be traded on margin in futures exchanges. By and large, the markets utilized in the trading vehicle are futures markets traded on margin, which if properly employed do not necessarily add volatility to overall portfolio performance, as most investors assume. On the contrary; using noncorrelative markets in thisallocation approach actually reduces the downside volatility in the performance curve of the portfolio to minimum and can increase overall profitability as well.
by K.D. Angle
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.