Saturday, October 25, 2008

Diversification



The recent market doom makes diversification difficult as all of the various asset classes have tended to become highly correlated. Perhaps expanding into wagering on thoroughbred racing is a way to go. The data analysis task is very similar to stock trading analysis and the outcome of the races should not be correlated at all to the stock market. Wagering also has the advantage that it is not influenced by news or political actions. It is just a matter of acquiring data and finding a place to wager over the Internet.

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