News, analysis and personal reflections on the markets & the financial sector

Sunday, August 30, 2009

Financial crisis of past year offers many lessons

About a year has passed since the financial crisis hit with full force, and investors could learn a few things from the experience. First and foremost, diversification is still a useful concept, but markets are so interconnected that there are limits to the level of security one can achieve from it. Now and then, trends are so powerful that diversification will not work.

No comments: