Considering a New Investment Paradigm
Hot off the presses ... I hope you Fools enjoy this one.
This is essentially a follow-up to an article I wrote more than a year ago about the broader implications of the financial crisis as they pertain to long-held investment strategies and the conventional wisdom concerning allocation and diversification.
As many of you know, I personally have created a very concentrated exposure to precious metals, base metals, and energy equities within my personal portfolio... and while I don't go around advocating to others that they match my degree of exposure, I do think that the time remains ripe for reassessing the conventional wisdom on asset allocation and approaches to diversification in the context of this crisis. Once the domestic economy is back on its feet, liquidity injections have been reined back in, and deficit spending replaced by fiscal responsibility, there will be plenty of time to return to the formulae that worked before the crisis began. In the meantime, and I think the meantime could last several years at least, I believe that adaptation will be a crucial ingredient for investing success.
Please share your thoughts after reading the article, either in the comments section there or here on the blog, and please rec the article if you value the content. Thank you, as always, for sharing your views and for your continued readership.