So far my diversity play is working as I expected. Today the S&P is down .85%, and my diversifiers are all up, GLD ^ 1.5%, Cash (BIL) ^ .01% (but cash is in an interest bearing account.), EDV ^ 1.1%, and BTC ^ 8%.
GLD EDV and BIL represent stability. BTC replaces the volatility I lost from selling stocks. The % I own of each asset adds up to a portfolio located on the efficient frontier, and with a Sharpes ratio of >1 (about 1.5:1). My overall portfolio risk remains about 10% (9.5%). Since each diversifier is only a “small percent” of my equities exposure, I’m still largely concentrated in equities. If the bull continues I’ll be riding the bull. If the crash comes I expect the diversifiers to act as a parachute. If the crash is severe and lengthy the money in the non stock pots should sustain me going forward.