Markets continue to be tumultuous, but it will take a lot for them to exceed the intraday stock market lows of last Friday (2/28). Likewise, it will take a great deal of extreme news to get the volatility index to exceed its recent intraday high.
Meanwhile, strategic diversification—diversification among different asset classes using active strategies designed to perform in different market environments—continues to do what it was designed to do. The following graphs show how stocks, bonds, and alternatives (represented by gold) have performed recently. Furthermore, they illustrate why having all three asset classes represented in a portfolio can play an important role in managing risk.
At Flexible Plan Investments, our core strategies include all three asset classes (stocks, bonds, and alternatives), and they are actively managed for both risk and opportunity. It is for that reason that we strongly suggest that at least 65% of a strategically diversified portfolio be in core strategies.
For more information on how you can build a low-fee, strategically diversified portfolio, call us at 800-347-3539, ext. 2, or email us at sales@flexibleplan.