In this paper, we look inside the Holy Grail of diversification and see how it works in a world where financial markets are as complex as they are fast-paced.
As we will see, we should not take diversification for granted but instead be ready to identify, adapt and quickly exploit diversifying opportunities – like the ones offered from sectors and risk factors – as they arise.
What is needed, is to take a step further: from a well-known principle to a scientific and opportunity-driven approach to diversification to guide investment decision making.
- The E=mc2 of Finance
- The More The Merrier? Not Always
- Opportunities Lie Between and Within Asset Classes
- Why Sectors Matter
- Not All Sectors Are Born Equal
- Where do we go from here?