ALLW
OptionsIf one had bought bonds, gold, VIX call options, and S&P 500 protective options on February 27th (the day before the conflict broke out), they would now be in a loss position on almost all positions.
This is also the reason for the recent decline in the "all-weather strategy." However, I think that with such a configuration, even though there is a loss, its magnitude is still smaller than that of a single major asset class, and the loss magnitude of a single major asset class is smaller than that of a single asset. This is the principle of diversification (CAPM Capital Asset Pricing Model). Therefore, one can still hold even when it falls, and for future market changes, rational hedging or reduction of positions can be achieved by using short ETFs.
Global "Stocks, Bonds, and Gold" Triple Sell-off Since March: "This Is the Worst Situation, Investors Have Nowhere to Hide"
Rising energy prices have fueled stagflation expectations, forcing central banks that had planned rate-cut paths to reconsider potential hikes, thereby simultaneously hitting the three major asset classes of stocks, bonds, and gold. The MSCI All Country World Index plunged 9% in a single month, gold plummeted 15%, and the "60-40" portfolio suffered its worst month in three years. Traditional safe haven logic has almost entirely failed as investors accelerate their move into cash
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