WHAT KIND OF FUNDS WORK BEST IN THE SMARTER THAN WALL STREET SYSTEM?
Narrowly targeted index funds that are not highly correlated with one another work best. On the equity side, index funds and sector funds are most profitable (think US Large Cap relative to Russia, or Utilities relative to Biotechnology). General or diversified equity funds reduce profitability. On the income side, very short money (cash) and very long treasury bills are sufficient. Intermediate income funds actually reduce profitability without decreasing volatility.