Last month I touched on the benefits of portfolio diversification, namely through the use of stocks and bonds. Today, I want to discuss why low interest rates and positive correlations between traditional asset classes may be the end of the traditional 60/40 portfolio, and why adding alternative investments into your portfolio might be a prudent move.
Wow... what a crazy month it's been. We've seen people panic-buying toilet paper, record volatility in the markets, and some of the fastest 20% drops in the history of the stock market.
Given the circumstances - I think it may be best to discuss the following topics in this month's newsletter:
- What caused one of the fastest stock market corrections
- What has happened during other extreme stock market events like the one we're seeing
- What may be expected for the remainder of the year
- What to do in this current market environment