A market-beating strategy you should never, ever attempt
— The Globe and Mail
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A widely praised speech by a Governor of the U.S. Federal Reserve Board outlined an investment strategy that will outperform the index nine times out of ten. But there’s a catch – the one time the strategy doesn’t work, the portfolio would be completely wiped out. Extended to the banking sector, the discussion underscored exactly what went wrong during the financial crisis and the complexity of the modern, credit-heavy investment environment.