by Steven Lewis on Jan 8, 2015
Risk is critical and must be respected when it comes to managing equities within a portfolio. One cannot rely solely on what is commonly known as 'diversification' to solve the problem. The problem with the typical approach to diversifying a portfolio with bonds, U.S. equities, emerging markets, etc., is that in many cases there is in many cases a portion of the portfolio that is not working. We do not operate like that. We diversify to optimize returns.