The ongoing issue with alternative investing has persisted for the last few decades. Can you find a better diversifier than traditional assets? The long-term trend has been for further market integration, so the demand for alternatives has been strong. You just do not get the benefit from international equity investors or holding fixed income.
While the trend toward traditional asset diversification is declining, there is an ebb and flow to this diversification. There is less diversification gain during a crisis, but there are periods when holding a diversified portfolio reduces risk; nevertheless, the demand for alternatives will be strong as long as market integration continues.
No comments:
Post a Comment