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« US Stocks Decline: Time to Sell? | Main | Weighing the Week Ahead: Will Q1 Earnings Disappoint? »

April 13, 2012


Houston Botox

I would not shed too many tears for the health insurance industry. They really are not needed.

The main function of the health insurance industry is to engage in medical underwriting -- that is, excluding those with pre-existing conditions from getting health insurance, and by extension, health care. The role of the health insurance industry is to insure that sick people die.

We really don't need them. The whole point of the ACA is to eliminate medical underwriting. Once medical underwriting ceases to exist, the whole health insurance industry serves no purpose but to collect rents.


OK, thanks, makes sense.

There are some bond funds that I didn't see represented - TIPS, high yield, EM, and international, although I'm not sure these add a lot of diversity.

I might have broken up the European fund into two smaller funds, but I can't for the life of me figure out a good combination of two. Scandinavia, UK, north/central Europe, southern Europe, eastern Europe, and Israel plus some frontier Africa. Now I'm open to suggestions :)


Proteus -- We did choose the specific list, but we also monitor a much larger list that includes nearly everything. Usually the top candidates there correspond to the trading universe. If there is something different and intriguing, we take a look.

The current list represents diversity and liquidity, and avoids duplication. If, for example, Latin America is strong, I do not want the top three holdings to be different Latin American countries. We are investing in the top three, so I want a single candidate for each theme. If someone prefers Venezuela to Chile, they can look at the longer list to choose.

Meanwhile -- suggestions are most welcome!



Jeff, apologies if you covered this before, but how did you choose the specific ETFs listed above? There doesn't seem to be a pattern. Liquidity is one factor, I guess, but are correlations considered, or do they just work well with the model?

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