Comments on: No Respite in Diversification http://balancejunkie.com/2010/07/23/no-respite-in-diversification/ In search of a better balance in money ... and in life Tue, 07 Feb 2012 10:47:29 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Book Review: Super Sectors | Balance Junkie http://balancejunkie.com/2010/07/23/no-respite-in-diversification/comment-page-1/#comment-21293 Book Review: Super Sectors | Balance Junkie Fri, 14 Jan 2011 10:47:42 +0000 http://balancejunkie.com/?p=6667#comment-21293 [...] real returns. The other major issue is, of course, that this approach may not provide you with any diversification at all, since asset classes are highly correlated [...] [...] real returns. The other major issue is, of course, that this approach may not provide you with any diversification at all, since asset classes are highly correlated [...]

]]> By: Book Review: Generation Earn | Balance Junkie http://balancejunkie.com/2010/07/23/no-respite-in-diversification/comment-page-1/#comment-11105 Book Review: Generation Earn | Balance Junkie Fri, 26 Nov 2010 10:47:52 +0000 http://balancejunkie.com/?p=6667#comment-11105 [...] a must. BJ readers are likely more than familiar with my thoughts on the reduced benefits of diversification in markets that have become very highly correlated. You also know that I don’t have anything [...] [...] a must. BJ readers are likely more than familiar with my thoughts on the reduced benefits of diversification in markets that have become very highly correlated. You also know that I don’t have anything [...]

]]> By: How Much Should You Invest in the Markets? | Balance Junkie http://balancejunkie.com/2010/07/23/no-respite-in-diversification/comment-page-1/#comment-7213 How Much Should You Invest in the Markets? | Balance Junkie Mon, 25 Oct 2010 16:11:49 +0000 http://balancejunkie.com/?p=6667#comment-7213 [...] this point, I see dangers out there from which diversification can’t protect us. So I’m not willing to put our money at risk. Others are. I [...] [...] this point, I see dangers out there from which diversification can’t protect us. So I’m not willing to put our money at risk. Others are. I [...]

]]> By: Canadian Personal Finance & Investing Carnival http://balancejunkie.com/2010/07/23/no-respite-in-diversification/comment-page-1/#comment-4119 Canadian Personal Finance & Investing Carnival Sat, 14 Aug 2010 21:24:12 +0000 http://balancejunkie.com/?p=6667#comment-4119 [...] Balance Junkie presents No Respite in Diversification [...] [...] Balance Junkie presents No Respite in Diversification [...]

]]> By: Cash: Is It Trash or King? | Balance Junkie http://balancejunkie.com/2010/07/23/no-respite-in-diversification/comment-page-1/#comment-3639 Cash: Is It Trash or King? | Balance Junkie Fri, 30 Jul 2010 09:48:18 +0000 http://balancejunkie.com/?p=6667#comment-3639 [...] recently wrote that these markets currently offer no respite in diversification because of the increasing correlations within and between asset classes. That’s another [...] [...] recently wrote that these markets currently offer no respite in diversification because of the increasing correlations within and between asset classes. That’s another [...]

]]> By: Stocks and Bonds: Pros and Cons | Balance Junkie http://balancejunkie.com/2010/07/23/no-respite-in-diversification/comment-page-1/#comment-3534 Stocks and Bonds: Pros and Cons | Balance Junkie Mon, 26 Jul 2010 09:49:07 +0000 http://balancejunkie.com/?p=6667#comment-3534 [...] discussed this a bit in Friday’s post on No Respite in Diversification, but I’ll try to make the pros and cons clearer [...] [...] discussed this a bit in Friday’s post on No Respite in Diversification, but I’ll try to make the pros and cons clearer [...]

]]> By: 2 Cents http://balancejunkie.com/2010/07/23/no-respite-in-diversification/comment-page-1/#comment-3506 2 Cents Sun, 25 Jul 2010 03:05:05 +0000 http://balancejunkie.com/?p=6667#comment-3506 I never did fit in with the cheerleaders in high school, and you're right - I've learned a lot from the folks who comment here. :) "We do not err because truth is difficult to see. It is visible at a glance. We err because this is more comfortable." ~ Alexander Solzhenitsyn Thanks for stopping by! I never did fit in with the cheerleaders in high school, and you’re right – I’ve learned a lot from the folks who comment here. :)

“We do not err because truth is difficult to see. It is visible at a glance. We err because this is more comfortable.”

~ Alexander Solzhenitsyn

Thanks for stopping by!

]]> By: larry macdonald http://balancejunkie.com/2010/07/23/no-respite-in-diversification/comment-page-1/#comment-3502 larry macdonald Sun, 25 Jul 2010 01:07:40 +0000 http://balancejunkie.com/?p=6667#comment-3502 Refreshing viewpoints in your posts and comments section. No rehashing common wisdom or cheerleading markets here. Refreshing viewpoints in your posts and comments section. No rehashing common wisdom or cheerleading markets here.
larry macdonald´s latest post ..Advantages of total-market ETFs

]]> By: 2 Cents http://balancejunkie.com/2010/07/23/no-respite-in-diversification/comment-page-1/#comment-3487 2 Cents Fri, 23 Jul 2010 20:55:37 +0000 http://balancejunkie.com/?p=6667#comment-3487 Anytime you want to post a rant like this one is OK by me. You just boosted my confidence for at least a week! In all seriousness, though, I found the same thing as you on many finance blogs and I wanted to offer an alternate perspective. Although I have no formal financial training, I've found that I'm just as likely to be wrong as the experts, so I might as well throw in my 2 cents too. ;) It's refreshing to hear from a financial professional (besides David Rosenberg and a few others) who's willing to admit that the emperor is, well, clothing-challenged. Thanks for visiting! Anytime you want to post a rant like this one is OK by me. You just boosted my confidence for at least a week!

In all seriousness, though, I found the same thing as you on many finance blogs and I wanted to offer an alternate perspective. Although I have no formal financial training, I’ve found that I’m just as likely to be wrong as the experts, so I might as well throw in my 2 cents too. ;)

It’s refreshing to hear from a financial professional (besides David Rosenberg and a few others) who’s willing to admit that the emperor is, well, clothing-challenged. Thanks for visiting!

]]> By: Marc http://balancejunkie.com/2010/07/23/no-respite-in-diversification/comment-page-1/#comment-3486 Marc Fri, 23 Jul 2010 19:59:33 +0000 http://balancejunkie.com/?p=6667#comment-3486 This post is right on the money. I'm very impressed with your understanding of markets. I'm a financial professional and I like to check out the finance blogs to see what folks are thinking. What I find 99% of the time are stock market cheerleaders with almost no real understanding of markets and risk. Just a lot of rehashed "common wisdom." It's clear that most of the "thinking" these days is strongly influence by outdated theories, incorrect mathematical assumptions, and a whole world of myths promulgated by the the Wall Street gang and by math junkies. You haven't fallen into that trap, and I congratulate you. It's probably your psych background :o) I read your bio, and see that you have no formal training in finance. In my opinion, that's a big plus. I bet that's what's allowed you to see that the emperor really just may be naked. My background is not in finance either. I think that folks with a finance background actually come to believe that you can develop mathematical models that hold up in the real world. You know what they say about being a hammer... everything starts to look like a nail. Anyway, sorry for the long rant. It's just that I rarely see such clear-headed thinking, and I wanted to tell you. Those who head your words will come out of this with a lot more money. Marc This post is right on the money. I’m very impressed with your understanding of markets.

I’m a financial professional and I like to check out the finance blogs to see what folks are thinking. What I find 99% of the time are stock market cheerleaders with almost no real understanding of markets and risk. Just a lot of rehashed “common wisdom.”

It’s clear that most of the “thinking” these days is strongly influence by outdated theories, incorrect mathematical assumptions, and a whole world of myths promulgated by the the Wall Street gang and by math junkies.

You haven’t fallen into that trap, and I congratulate you. It’s probably your psych background :o )

I read your bio, and see that you have no formal training in finance. In my opinion, that’s a big plus. I bet that’s what’s allowed you to see that the emperor really just may be naked.

My background is not in finance either. I think that folks with a finance background actually come to believe that you can develop mathematical models that hold up in the real world. You know what they say about being a hammer… everything starts to look like a nail.

Anyway, sorry for the long rant. It’s just that I rarely see such clear-headed thinking, and I wanted to tell you. Those who head your words will come out of this with a lot more money.

Marc

]]> By: 2 Cents http://balancejunkie.com/2010/07/23/no-respite-in-diversification/comment-page-1/#comment-3485 2 Cents Fri, 23 Jul 2010 19:30:34 +0000 http://balancejunkie.com/?p=6667#comment-3485 I think asset allocation can work, but I think it will work differently today than it did in 1982. Today's markets are structurally different and we are in a different type of secular environment than we were back then. Anyone who followed the pre-packaged buy and hold or set it and forget it asset allocation models over the past decade (or two) is probably not thrilled with the results. Today we crossed above 1100 on the S&P 500. We're up from the low of 666 in March of 2009, but if you started investing around 1998 (as I did) you are right back where you started. :( It's a Jack Be Nimble market out there! :) I think asset allocation can work, but I think it will work differently today than it did in 1982. Today’s markets are structurally different and we are in a different type of secular environment than we were back then.

Anyone who followed the pre-packaged buy and hold or set it and forget it asset allocation models over the past decade (or two) is probably not thrilled with the results. Today we crossed above 1100 on the S&P 500. We’re up from the low of 666 in March of 2009, but if you started investing around 1998 (as I did) you are right back where you started. :(

It’s a Jack Be Nimble market out there! :)

]]> By: Roshawn @ Watson Inc http://balancejunkie.com/2010/07/23/no-respite-in-diversification/comment-page-1/#comment-3484 Roshawn @ Watson Inc Fri, 23 Jul 2010 19:13:04 +0000 http://balancejunkie.com/?p=6667#comment-3484 Pretty revolutionary concept: diversification and asset allocation may not work. I think the challenge is an investing mindset. Most people invest like they are saving to buy something (buy and hold). Having technical analysis skills in order to evaluate the market in this way is certainly a hurdle, especially when getting people to invest and understand their investments is hard enough. You asking for higher level skills. Anyway, this is a very interesting commentary. Pretty revolutionary concept: diversification and asset allocation may not work. I think the challenge is an investing mindset. Most people invest like they are saving to buy something (buy and hold). Having technical analysis skills in order to evaluate the market in this way is certainly a hurdle, especially when getting people to invest and understand their investments is hard enough. You asking for higher level skills.

Anyway, this is a very interesting commentary.
Roshawn @ Watson Inc´s latest post ..Will The Dow Really Drop By 90

]]> By: Tweets that mention No Respite in Diversification | Balance Junkie -- Topsy.com http://balancejunkie.com/2010/07/23/no-respite-in-diversification/comment-page-1/#comment-3482 Tweets that mention No Respite in Diversification | Balance Junkie -- Topsy.com Fri, 23 Jul 2010 13:57:23 +0000 http://balancejunkie.com/?p=6667#comment-3482 [...] This post was mentioned on Twitter by TWEET STOCKS, 2 Cents. 2 Cents said: No Respite in Diversification http://goo.gl/fb/l5iC5 [...] [...] This post was mentioned on Twitter by TWEET STOCKS, 2 Cents. 2 Cents said: No Respite in Diversification http://goo.gl/fb/l5iC5 [...]

]]>