| The dawn of a new millennium marked the end of the secular bull market in stocks that had begun almost two decades earlier in the autumn of 1982. The magnitude of the subsequent decline in equity prices forced investors – albeit reluctantly – to accept that returns had been more than excessive during the heady days of the dot.comboom.
The verdict to emerge from investors’ soul-searching was clear – the high valuations afforded to stocks meant they could no longer be depended upon to deliver stellar returns year after year, while the notable increase in correlations among existing classes of risk assets amid the turbulence confirmed that the diversification benefits of traditional asset allocation models had been eroded...............................................Full Article: Source
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