Diversification works most of the time but not all of the time.| A Wealth of Common Sense
In 2001, Enron was the 7th largest company by revenue (close to $50 billion) before declaring the largest bankruptcy in the U.S. (at that time). Fortune magazine named it “the most innovative company” six years running from 1995-2000, right before they blew up. They were also named the 7th “most admired” company in 2001, the...| A Wealth of Common Sense
Beginning in the summer of 1997 a number of southeast Asian countries experienced a financial crisis that would wreak havoc on their currencies and the broader emerging markets in general. Countries like Thailand, Indonesia and South Korea all experienced a severe depreciation in their currencies. The MSCI Emerging Markets Index proceeded to get chopped in half over...| A Wealth of Common Sense
A historical look at the win rate for the 60/40 portfolio over various time frames.| A Wealth of Common Sense