- Stocks and bonds don’t provide diversification, while gold only does sometimes.
- Alternative assets are better, but not all of them are equal.
- Hedge funds perform well in bear markets but heavily underperform in bull markets.
The increased market volatility after the quiet summer demonstrates how risky markets can be. The market falling by 2.5% in a few days on practically no news except for an increased probability of a small increase in in interest rates and no additional stimulus in Europe is a sign of the market’s fragility. More →