The authors do an admirable job of explaining the benefits of diversifying
across uncorrelated asset classes, which is a core principle of the Couch Potato strategy.
Not exact matches
At the heart of Modern Portfolio Theory is the understanding that in order for a portfolio to be truly diversified, its investments must be allocated
across several
uncorrelated assets.
Which demands I construct an alternative portfolio — a portfolio that's diversified
across both
asset classes & geographies, that's both defensive & offensive, and that's ideally as
uncorrelated (both internally & externally) as possible.