When it comes to investment styles, death is a surprisingly popular topic.
When the Internet bubble was inflating, plenty of investors said that diversification was dead. When it popped, buy-and-hold was declared dead; when it rebounded but market timers lagged behind the recovery, timing was dead. When the financial crisis hit, stock investing was dead; when that led to inflation that looked dangerously like a bond bubble, some felt that bond investing was dead.
Now that the stock market has rebounded and reached record highs — peaks that have been achieved domestically, in a rally that has been felt mostly in the most popular group of stocks on earth — investors are suggesting that asset allocation is dead.
To borrow from Mark Twain, reports of this death are exaggerated.
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