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  5. MISC: Dear Peter et al [Miscellaneous]

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Q: Dear Peter et al:

Market is going through the long awaited correction, Not pancking...yet! I review my own portfolio once in a few weeks and see if I can tweek it. I contructed an asymmetrical barbell with mainly Vanguard's ETFs (SAFE) and small/mid sized allocation for growthy stocks. I also have a basket for non-corelated stock. I had posed questions here at 5i Rearch in September 2023 and slowly constructed these "baskets"!

My quesion is this: How come VPU Vanguard's utilities ETF and almost all of my Private equity stocks including your all time favourite BN plus BLK/BX and most notably KKR are all down?!! They are supposed to act as a buffer, no? Because I have been buying them slowly, I am still in the positive territory, except VPU. But the fact that the non-correlation isn't taking place, makes me wonder if I have to tweek my percentage of allocation. I know it is personal. But this is more a conceptual question.

Would you add to Utilites and Private equity here or keep this framework and stay the course?

BTW my Canadian Utilities like EMA/H/FTS have withstood this correction and indeed have shown the anticipated non-correlation!

Sorry for this longish question.

Look forward to your answer.
Asked by Savalai on March 11, 2025
5i Research Answer:
In a market sell-off that we have seen, nothing is really safe. Correlation tends to increase in...
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