Easy Allocation Models ‘Doomed’ as Diversification Breaks Down
- Stocks, bonds, commodities move in lockstep amid volatility
- ‘Investors will have to work harder’ to hedge risk: Bernstein
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Finding shelter from stormy markets is getting harder than ever.
Major asset classes have been trending together to levels rarely seen over the past decade and, more often than not, that trend has been down. Investors who enjoyed easy gains as markets rose in sync in the past six months are struggling to find securities that move in opposition, leaving them exposed to losses even if they’re diversified.