UNIQUE ZYX ASSET ALLOCATION
The model gives precedence to risk control over potential rewards. The model is designed to maximize risk adjusted returns over a long period of time. The model is not designed to maximize absolute returns over short periods of time.
- Searching the globe for non correlated assets, i.e., the assets that do not go up and down together.
- Making money not only when markets go up but also by making money when the markets go down.
- Diversifying strategies based on different time frames, i.e., by diversifying between very long-term, long-term, medium-term and short-term horizons.
- Buying assets when they are cheap.
- Selling assets when they are expensive.
- Getting ahead of the inflection macro points, i.e., using leading indicators to make decisions as opposed to using lagging indicators.
- Not being afraid of being in cash.
- Being content to miss high risk rallies in the markets.
- Focusing on the risk adjusted returns over a long period of time.
- Being driven by the data and not getting stuck in certain opinions.