New York Sun – What ever happened to noncorrelated assets? Modern portfolio theory suggests that investors should spread their funds among a wide variety of asset classes so that when one sector getshit, another may prosper. That seems like a good idea until a selling wave engulfs pretty much all markets, as has been happening these past few days.
On Tuesday, stocks and bonds continued their plummet in the U.S., while European markets tumbled nearly 2% and Japan was off more than 4%.
