After the huge losses in markets last year, the long knives have come out on diversification.
It seems that everyone now shuns the idea of owning multiple asset classes. Curiously, no one was complaining in 2002-2007, when bull markets prevailed in just about everything. Of course, the crowd has a habit of promoting (or remaining quiet when it comes to critical comments) about strategies that are working in real time. After the fact, it’s all a bunch of hogwash. So be it. That’s the nature of finance: History, and what passes for intelligent counsel, is constantly being rewritten to suit the moment.