These days it’s incredibly easy to get exposure to every asset class. But while diversification reduces your overall risk, it increases the chance that something in your portfolio won’t be doing well. Not everything rises at the same time, after all.

Today’s video explores this topic and investigates how one might manage today’s downturn in gold stocks using a naked put on GOLD as an example.

Enjoy!

NOTES

Asset Classes: Stocks, Bonds, Commodities,

Stocks: U.S., Foreign, Tech, Biotech, energy,

Bonds: TLT, TMF

Commodities: USO, XOP, XLE, GLD, SLV, GDX, GDXJ, NUGT

Asset class diversification mixed with strategy diversification

Bull trade on SPY/QQQ/IWM

Bull trade on TLT

Bull trade on GLD

What are the odds that stocks/bonds/gold will go down simultaneously?

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