Unscientific but Effective Hedged Portfolio Experiment

As the market continues to confuse and confound the vast majority of participants I thought it would be a good time to go back and check on my hedged portfolio experiment. I have been tracking two portfolios, one of stocks in the S&P 500 (SPY) that are down more than 50% in the past year and one of index components that are lagging the market and trade below book value.

I have not been as scientific with the tracking and rebalancing as I should have been but I find the results to be none the less informative. We need to see how the approach holds up in a severe decline but so far it works fairly well delivering solid returns with lower volatility....600 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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