Yeah I said it.

My response…

You can make a case for all sorts of other stuff in a portfolio. But you cannot make a case that they are necessary. The evidence suggests that diversifying away into other asset classes or strategies can enhance returns during some periods of time or that they can change the amount of volatility a portfolio experiences (in real life or just optically), but the evidence does not say this is somehow better than sticking with the basics over long stretches of time.

People will say “What about private equity? What about venture? What about hedge funds? What about managed futures? What about MLPs? What about options? What about foreign currencies? What about physical commodities? What about timberland? What about art and wine and classic cars and collectibles? What about crypto currencies?”


Or not.

Your choice. But it works without these things just fine. And be aware that while these additive things may offer diversification benefits, they will also be adding complexity, new risks, higher costs that may or may not be recouped and higher taxes.

And, as in most areas of life, things that have some benefit sometimes also introduce drawbacks at other times. Accept no narratives saying otherwise.


What's been said:

Discussions found on the web
  1. is 7lab pharma store legit commented on Oct 08

    … [Trackback]

    […] Here you can find 36777 additional Information to that Topic: […]

  2. Keltecs commented on Oct 14

    … [Trackback]

    […] Info to that Topic: […]

  3. 토렌트큐큐 commented on Nov 13

    … [Trackback]

    […] Find More to that Topic: […]

  4. td bank login commented on Nov 17

    … [Trackback]

    […] Read More on to that Topic: […]

  5. Fausse Rolex commented on Dec 30

    … [Trackback]

    […] There you can find 33455 additional Info to that Topic: […]

  6. montre replique commented on Jan 16

    … [Trackback]

    […] Information to that Topic: […]