Balancing the Weight of a Feather, from Scott Brooks
I found this video fascinating and mesmerizing…….especially the ending.
Ralph Vince writes:
"The intricacies of designing a proper portfolio can often balance on the weight of a feather."
There's a LOT in that statement. The generally-practiced mean-variance style portfolio constructions miss this point however — that a single component can readily offset all other components in the portoflio over time — even if that single component is profitable!