Errors in asset allocation

What’s gone wrong with asset allocation? The foundation technique of portfolio management seemed to collapse under the pressure of last year’s market meltdown.

The problems were twofold: diversification generally didn't work; and alternative assets, into which many investors had fled following the stock market slump of 2001, failed to deliver the promised uncorrelated returns.

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Ray Dalio Sells Last Stake in Bridgewater, the Hedge Fund That Made Him a BillionaireExternal link

Ray Dalio Sells Last Stake in Bridgewater, the Hedge Fund That Made Him a Billionaire