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How much should be devoted to various asset classes?
While Harvard, Yale et al. suffered declines in the value of their endowments, I would point out that they outperformed the respective underlying asset classes handily in an environment where, to your point, correlations were converging to one.
Other asset classes have been equally disappointing.
We have clearinghouses for different asset classes.
Mr. Evensky recommends diversifying within asset classes.
As other asset classes head south, they may remember.
First, new launches are focusing on specialised asset classes.
They can thus afford to invest in illiquid asset classes.
And other asset classes have been similarly buoyant.
It could be that investors herd mindlessly into asset classes.
But fees also vary widely within asset classes.
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