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Diversification: It’s All About (Asset) Class

If one were to poll investors and investment professionals to determine their ideal investment scenario, the vast majority would no doubt agree: It’s a double-digit total return in all economic environments, each and every year. The reasons for this are diverse: misallocation of assets, pseudo-diversification, hidden correlation, weighting imbalance, false returns, and underlying devaluation. In this article, we will show how to achieve true diversification through asset class selection, rather than stock picking and market timing.

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