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Staying the course: a multi-asset view

The rest of the year will remain volatile and investors should be prepared to expect the unexpected.

Published Tue, May 3, 2016 · 09:50 PM

THE future - by definition - is uncertain. In the absence of crystal balls, the so-called "free lunch" of diversification has become one of the chief tenets of smart asset allocation policy.

The simple philosophy of combining defensive assets with riskier assets to find the appropriate long-term risk/return trade-off has been the staple of long-term investors for many years and has given rise to the static strategic asset allocation philosophy prevalent in many "balanced funds" managed around the world.

The trouble with set and forget

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