Diversification Didn’t Help as Much as Hoped in 2008

Denver Business Journal - by Richard Todd

In March, 264 investment professionals were asked to judge whether this statement is true or false: “Diversification failed investors in the current financial crisis.” The question appeared to be controversial: Fifty percent answered true, and 50 percent said it was false.

Had this same question been addressed to individual investors or to investment committees, a strong majority probably would have answered “true.” Not only were stocks down severely in 2008, but investors felt there was no available shelter in the worst financial storm since the 1930s. Read More...