NOVEMBER 2017
Diversification: Is the Free Lunch Worth the Heartburn?
Diversification and its long-term benefits have been accepted as a core investment insight. Many have begun to question its benefits, however, due to the underperformance of most diversifying asset classes over the last five years.
ARTICLES
Building Portfolios: Diversification without the Heartburn
By Jim Masturzo, Jonathan Treussard
January 2017 | Read Time: 15 min
The wisdom of diversifying investor portfolios across a wide range of asset classes is indisputable. But diversifying client portfolios beyond mainstream stocks and bonds comes with challenges, starting with clients’ unfamiliarity with diversifying asset classes and a propensity for clients to regret diversifying when results disappoint. Our Asset Allocation Interactive tool can help advisors strike a sensible balance between adopting diversification and client comfort, adding the needed spice to portfolios without tipping into untenable heartburn.
