| From FT: Before the credit crisis, institutional investors believed if their portfolios were diversified across a range of assets they were protected against the onslaught of plunging markets.
Many were encouraged to diversify from traditional investments, notably equities and bonds, in favour of alternative assets, including commodities, hedge funds, private equity and real estate. The argument was that diversification reduced risk without necessarily reducing returns as asset classes were unlikely to all fall in value at once..... Full Article: Source
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