The Hardest Trade Is Holding The Thing That Doesn't Hug You Back
The article discusses the dual nature of returns and feelings associated with different assets in a portfolio. It highlights that while stocks provide both returns and emotional satisfaction, true diversifiers like managed futures primarily offer returns without immediate emotional rewards. Ultimately, the most beneficial trades over time may not provide the most gratification in the short term.
- ▪Every asset in your portfolio pays you in two different currencies: returns and feelings.
- ▪Stocks pay you in both returns and feelings on a variable schedule.
- ▪True diversifiers like managed futures mostly pay you in just returns, often feeling like nothing at all.
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