Asset Allocation & Diversification

QUESTION: You do not believe in wide diversification?

ANSWER: No. Wide diversification is only required when the investor does not have a clue about what is going on in the markets. We have asset allocation models for Institutions who simply believe they must have some diversification. The main objective is to limit the areas they will take losses on because of diversification. Why buy government bonds when you know we are at a 5,000 low? I am sorry, but sometimes the allocation to a particular segment should be ZERO!

Latest Posts

Market Talk – April 16, 2024

ASIA:   The major Asian stock markets had a negative day today: NIKKEI 225 decreased 761.60 points or -1.94% to 38,471.20 Shanghai decreased 50.31 points or -1.65% to 3,007.07 Hang [...]
Read more

We are TOO Stupid to Vote

Aristotle believed that after Pericles died in 429 BC, the demos had continually appointed charismatic demagogues who undermined Athenian democracy. The three main Greek philosophers were against Democracy because the [...]
Read more