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

Why The USA is Collapsing

Justice Brett M. Kavanaugh spoke at a judicial conference for the 5th U.S. Circuit Court of Appeals, which hears appeals from Texas, Louisiana, and Mississippi. Justice Kavanaugh said that unpopular [...]
Read more