S&P 500 volatility this year

Discussion in 'Trading' started by smartmoney, Jan 17, 2009.

  1. With optimism over a new administration in Washington DC and the continuing dour news on the nation's economy, it is expected that the market will continue to be in turmoil.

    The way to play this market is to diversify across asset classes and look beyond the the shores of USA for trading opportunities. Big guys are doing it so why not the little guys?
     
  2. 1) Diversification is irrelevant if everything is correlated.
    2) Diversification is for dimwits who don't know where to concentrate their positions.
    3) Diversification is espoused by "professionals" who merely want to churn their customers' accounts.
    4) Little guys can't really "diversify" because they don't have enough money to properly do so.
     
  3. Smart money is very mobile, and a lot of funds are chasing the 'Global Macro' style of investing. Easy to do if you had a few hundred million, harder for the little guy...