Q: Dear Peter et al:

This is a big picture, non-personal question of a "fictional" account of a million dollars :)

From your answers to various subscribers over a period of years, I know that you have always said the portfolio construction is based on individual's personal needs and wants. Agreed!
Hence this general question!

If one wants to have 20% of the portfolio in NON correlated, steady as she goes kind of stocks or bonds, what should one buy?
I see that even though the stocks and bonds are not correlated, in 2022 they both were severely punished. Gold hasn't gone anywhere. Energy was down now but has gone waay up!

Even the ardent fans of Technical Analysis seem to be "confused" about non performance of their Intermarket Analysis approach. (John Murphy)

So, the question is how can one construct a portfolio with non correlated assets and come up with an asymmetrical barbell portfolio (Nessim Taleb?)
I have been looking at Utilities, Financials, Emerging markets, bonds, Gold........nothing seem to be appealing!

Any words of wisdom?
Many thanks in advance.

Mano.

Q: Hi 5i,

Can you explain how the “VIX” is related to the “VXX” ETF? I would have thought they should trade in tandem but they don’t even come close on some days (Example: Jan 3/23 VIX up $1.23 VXX down 8 cents).

Thanks
John

Q: Hi, My questions is about the best way to hedge the current market and economy. I have a large portion of my money in the stock market, and I feel things are becoming over extended. I've thought about putting some money in the VIX, however I'm not sure if that's the best way to play a downturn. I'd appreciate if you could give me your opinion on the best way to hedge, in case of a heavy downturn in the market/economy. Thanks a lot.