Small Stakes - March 9, 2021 - True Diversification in Futures
Futures provide a broad diversity that can make it easier to avoid too much exposure in one place, but Frank and Pete go a step further to show you how to truly diversify. The guys crunch a couple years' worth of data to provide some robust correlation values on everything from stocks and bonds to metals and crude oil.
At the end of the day, they conclude that being net short or long is fine as long as your positions aren't focused in risk-on markets.
Watch today's show to find out what those risk-on markets technically are, and see what correlations these guys have in mind when trading.