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Don't give up on diversification
Old 05-20-2009, 09:03 AM   #1
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Don't give up on diversification

I know some here are considering a change if they get back some of what they lost (yours truly included).


"But you can’t form a long-term investment policy on a “unique, non-recurring episode,” Kritzman says. (At least we hope it’s non-recurring.)"


Diversify Your Investments Even If It Hurts: Jane Bryant Quinn - Bloomberg.com
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Old 05-20-2009, 10:18 AM   #2
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"But you can’t form a long-term investment policy on a “unique, non-recurring episode,” Kritzman says. (At least we hope it’s non-recurring.)"
That makes a lot of sense to me. It seemed like everything suffered in the economic mess, but that has not been the case consistently in previous years. So, I see no reason to shift my plan.
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Old 05-20-2009, 10:53 AM   #3
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I see the major purpose of this kind of asset class diversification as giving an advisor or portfolio controller someplace to hide. If you are an FP you can still get your 1% or whatever, and when your "allocation" blows up just point to all the "research" that supports your planning.

Same if you are a married person in charge of investing family assets. "I know Honey, but all the experts said this was the way to do it. Really, in the long run it is the only way."

Works pretty well also for someone who only has to answer to himself, but likes to have a handy blame-sink.

Ha
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Old 05-20-2009, 11:01 AM   #4
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Works pretty well also for someone who only has to answer to himself, but likes to have a handy blame-sink.
That is so true. Last October I could say to myself, "Well, I did just about everything I could!!" and that way I didn't beat myself up too badly. Besides, everybody else was suffering at least as badly as I was so that also kept me from beating myself up about it.
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