Portfolio diversification is the only free lunch for investors. If you diversify and periodically reallocate, you protect and grow wealth really well. Except t

Portfolio diversification is the only free lunch for investors. If you diversify and periodically reallocate, you protect and grow wealth really well. Except that the benefits from diversification have been decreasing over time. The lesson of diversification has been learned so well and permeated the financial industry that everything is now correlated. The rise and rise of correlation https://www.ft.com/content/5a40b6a8-d176-11df-96d1-00144feabdc0 https://www.ft.com/content/5a40b6a8-d176-11df-96d1-00144feab... It used to be that stocks, bonds and gold moved differently. Now they are more or less correlated because all asset managers diversify. When the global markets are stressed. Those who get margin calls sell their diversified assets in diversified manner and all asset values decrease.