Tip TV Education: Avoid big drawdown via diversification

May 22, 2017, 11:58 AM

In today's Tip TV Education segment, Dr. Corvin Codirla, Founder of CCFX talks about finding two negatively correlated assets while constructing a portfolio so as to avoid sharp drawdown and amplify profits.

Codirla compares the results of investing in S&P 500 and investing in S&P 500 along with bonds. The latter is a much smarter decision as the drawdown during the 2008 Great Financial Crash was significantly less in the later as compared to the former.

Listen to the full segment to know why investing in positive correlated assets ends up amplifying losses.

#trading, #strategy, #Education, #investing, #diversification