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

Stagflation Begins

Nine of the 12 Federal Reserve districts reported a decline in economic activity in August, up five districts from the July Beige Book report. Our system has warned that we [...]
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Forecasting Recessions

https://www.armstrongeconomics.com/wp-content/uploads/2016/02/Summers-Economy-Not-Predictable.mp4   COMMENT: Mr. Armstrong, I find it incorrigible that everyone now claims recession when they have never predicted a recession before. That was clear from the video you had [...]
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Market Talk – September 9, 2024

ASIA: The major Asian stock markets had a mixed day today: • NIKKEI 225 decreased 175.72 points or -0.48% to 36,215.75 • Shanghai decreased 29.32 points or -1.06% to 2,736.49 [...]
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