Further to my recent blog More correlation between stocks and oil, During financial crisis, most of the investments became correlated and melt down all together. Asset Allocation seems to have lost its charm.

Since Mar 2009, most of the assets have took off except one, soft commodity.From the chart below, you can clearly see that BNP Paribas Agriculture Fund, which increases the value of its assets over the medium term through exposure to the following agricultural commodities indexes, has somewhat departed from global stock index for the past year.

Those investor who stick to the proper asset allocation strategy could be truly rewarded even during the past few months’ downturn.

Source: iFast
About the Author

Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
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