Finance & Fury Podcast

Welcome to Finance and Fury Traditional asset class allocation Diversification getting harder Diversification in a world where most asset classes are becoming correlated Diversification: what it is and isn’t Diversification across asset classes is one of the most fundamental principles of investment portfolio construction Reason - different types of assets perform differently at different stages of the economic cycle When done properly - diversification across asset classes results in stable returns at less risk - An appropriately allocated portfolio helps smooth out the ups and downs of the markets so investors can enjoy the positive compounding of returns over time About downside risks – whole portfolio shouldn’t fall as much in the face of a market correction – allows a portfolio to retain its value A loss of 10% = 11% to reverse the loss A loss of 25% = 33% to reverse the loss A loss of 50% = 100% to reverse the loss – 90% loss = 900% gain Asset allocation and Diversification - asset allocation is