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The Anti-Fragile Portfolios
By (The) Boring Investor  •  March 22, 2015
Most investors will worry about a bear market. However, if you have an anti-fragile portfolio, then you should not need to worry about it. In fact, you should maybe even relish it should one comes along. What is an anti-fragile portfolio? First of all, let us define what is "anti-fragile". The word "anti-fragile" comes from the book bearing the same name written by Nassim Nicholas Taleb. It is used to describe things that will become stronger from shocks. It is different from "robust", which just means things can withstand shocks but will neither gain nor lose from them. As Taleb himself is a former trader, he gave examples of what instruments are anti-fragile. One such instrument is options, which will rise substantially in price should an unexpected shock (also known as a "Black Swan" event) occurs. Thus, an example of an anti-fragile portfolio is a barbell portfolio comprising mostly of, ......
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By (The) Boring Investor
nvestor, Engineer, Photographer, Blogger, Friend and Son.
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