The “New Diversification” is a phrase coined by BlackRock to acknowledge the fact that traditional definitions of diversification have their shortcomings—a hard lesson borne out in the 2008 credit crisis. Now, many years later, this evolved form of diversification remains as important as ever. Dr. Christopher Geczy offers his views on why widening your sources of risk and return is always a prudent approach—in good times and in bad.
Investors cannot necessarily rely on what is traditionally thought of as diversification to meet their long-term goals.
Lessons from the financial crisis
A role for alternatives