Very good point on geographic diversity and over the long term is should work to investor advantage. In the short term, during a crash correlations are likely t

Very good point on geographic diversity and over the long term is should work to investor advantage. In the short term, during a crash correlations are likely to be high and moves in EM more extreme (small exit doors). However, my original point was that assuming things will be golden forever (or at least a very long time) usually ends badly. To your follow up on allocations, unlike the past, a large bond holding is unlikely to save you this time (very limited price appreciation potential) and could go the other way when under stress (liquidity issues, forced redemptions to cover equity losses). It is harder to hide than ever before.