In other words, bonds usually zig when
stocks zag.
Bonds generally have a very low correlation to stocks (they zig when
stocks zag) and they offer you income in the form of fixed cash flow payments.
With gold zigging and
stocks zagging, portfolio risks can hopefully be spread out better.
Not exact matches
Put simply, when
stocks zig, gold
zags.
Those with a beta of 0 tend to move independently of the market, while
stocks with negative betas tend to zig when the market
zags.
The
stock market zigs,
zags, booms, and busts.
Ideally, when the U.S.
stock market zigs, your foreign holdings would
zag, offering more stability overall than a portfolio comprised solely of domestic
stocks.
In any given year, different
stock markets or different asset classes will zig while others
zag.
And then we will short or we will sell $ 0.90 worth of the
stocks we like the least, so we have a 90 long, 90 short, long short overlay on top of the dollar in the S&P, but we do some things to mitigate because obviously if we are going to zig and
zag too much, we want to have tracking error but positive tracking error.