tag:blogger.com,1999:blog-5465015914589377788.post1934380451446345456..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Confirmation that Mandelbrot Beats Standard Economic TheoriesMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5465015914589377788.post-63741692241744230822011-12-08T09:04:49.675-05:002011-12-08T09:04:49.675-05:00@Mark: For investors who are likely to panic and s...@Mark: For investors who are likely to panic and sell at a bad time, this research suggests that they should be a little more conservative with their portfolios than standard theory would suggest. One way to do this is with asset allocation. Another is with options. However, I've never been able to make the numbers work using options to reduce downside risk. Every time I try to build a real portfolio incorporating options the cost of the downside protection seems far too high.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-45366842470326982062011-12-08T08:44:40.616-05:002011-12-08T08:44:40.616-05:00Doesn't the conclusion suggest that the typica...Doesn't the conclusion suggest that the typical investor - active or passive - needs more downside protection?Mark Wolfingerhttp://www.mdwoptions.com/Premium/home-page/noreply@blogger.com