The Power Of Diversification
Furthermore, since “everyone” is investing in treasuries, they have become relatively expensive, making it hard to buy low and sell high. Meanwhile, other asset classes like alternatives have become cheaper, especially as valuations have corrected. While different asset classes will outperform in different market environments, timing the market to get into an asset class before others is harder than ever. In the age of X/Twitter and high-frequency trading, the time advantage may be hours or days, not weeks or months. Because of this, long-term strategic asset allocation trumps tactical moves, and a balanced portfolio demands a thoughtful blend of diverse assets to weather the storms of fluctuating market conditions.