This article by Greg Newton was published in Sep 2007. As was apparent to any sane market observer then, the capital markets were refusing to see reality and were in the brink of a period of high volatility. To safeguard the long-term health of my portfolio, I moved out of US equities and put 50% of my portfolio in the RYMFX Managed Futures fund by Rydex. Here is a description of the fund and its underlying index by Greg Newton. Till today, it has given me a positive 10% return, in a period of high equity market volatility.

The combination of a little-known Standard and Poor’s index and the Rydex Managed Futures Strategies Fund (RYMFX) delivers an investment that over more than 20 years of market history—and almost any period within that history—is pretty much uncorrelated with everything. And that includes the investment class it is named for, one of the most historically reliable portfolio diversifiers of all: actively managed, managed futures strategies.