Being objective about your objectives

James Dunn | PortfolioConstruction Forum | 16 July 2013

Traditional portfolio construction has come under a great deal of scrutiny since the turmoil of the Global Financial Crisis when the limitations of what we've known as diversified portfolios became all too apparent. Prime among the lessons learned was that when sentiment is bad enough, everything correlates to one - and when that happens, liquidity is not assured.  Other lessons? Equity risk was too dominant, beta can often be disguised as alpha, and asset alloc...