The future remains as murky as ever, but the questions are becoming increasingly obvious.
Let’s start with three. There are many more, of course, but these three seem particularly topical and so knowing the answers to the following questions—topics, really– would be immensely helpful for enhancing investment returns and all but eliminating risk. Unfortunately, that would require financial and economic clarity, both of which remain in short supply.
There’s always a delicate balance of risk and reward, of course, and it’s always laden with mystery as to what comes next. But the current outlook carries a bit more potential for each. So it goes in moments of distress and transition. In theory, asset allocation may warrant more extreme strategies when (and if) the valuations become immoderate. On the other hand, if valuations are generally middling, the case remains strong for broad diversification among the asset classes.