Personally, I will continue to avoid potentially «hot» investments and focus on maintaining a broadly diversified portfolio with low
correlations among asset classes.
The trouble is that these allocations depend upon knowing
the correlations among the asset classes, but they are constantly changing.
Not exact matches
They will then diversify
among investments within the
assets classes, such as by selecting stocks from various sectors that tend to have low return
correlation, or by choosing stocks with different market capitalizations.
They will then diversify
among investments within the
assets classes, such as by selecting stocks from various sectors that tend to have low return
correlation, or by choosing stocks with different market capitalizations.
Quite frankly, Iâ $ ™ m concerned that the negative
correlation that existed
among the
asset classes may lessen next year so I may start the next year mainly in cash.