I am a strong believer in the power of diversification – which helps you achieve better returns at lower risk. This article provides some very interesting data to help you understand the benefits of diversification.
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If you regularly read this blog, you know I’m a big fan of holding the financial media accountable for their predictions and proclamations. Since I’m now part of the financial media, I should be held to the same standards. Last year, I defended asset allocation and diversification in the wake of the market turmoil. Let’s take a look at how diversification has fared since being declared dead a few years ago.
During the financial crisis of 2008, it appeared that diversification didn’t work when it was needed most, as many asset classes tumbled — stocks, commodities, junk bonds, preferred stocks, convertible bonds and emerging market bonds all got hammered during the crisis.
Read the complete article here:  Diversification Is Still Alive and Well – CBS MoneyWatch.com.