The Positives of Negative Correlation
All individuals, organizations, industries, and even national economies are subject to routine setbacks, ranging from minor inconveniences to major catastrophes. The recent performance of the U.S. economy, the largest economy in world history, is a good reminder that even something that may sometimes seem miraculous and invincible is subject to downtrends, cyclical or otherwise. An investment portfolio is likewise not immune to setbacks. In fact, setbacks are so likely to occur that the best defense may be to expect some losses but to employ a method to help reduce any damage. Up vs. Down Different types of investments are subject…