tag:blogger.com,1999:blog-706772597530050449.post5903056591856037773..comments2024-02-19T12:04:56.080-05:00Comments on Reading the Markets: Schneeweis, Crowder, and Kazemi, The New Science of Asset AllocationBrenda Jubinhttp://www.blogger.com/profile/02587551531260863509noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-706772597530050449.post-28616314425579906902010-04-08T03:25:05.460-04:002010-04-08T03:25:05.460-04:00Don't file that formula, throw it away. Hedgin...Don't file that formula, throw it away. Hedging should be predictive, constant, or some combo of the two. If you hedge *after* the VIX spikes, then your portfolio has already felt the blow of volatility and now you are less invested when price is cheaper. The formula may sound good in theory, but I would backtest its actual results, because just looking at a longterm chart of the VIX next to the S&P 500 should show its problems.Joshhttps://www.blogger.com/profile/10241276842886529712noreply@blogger.com