The Economist (US), March 10th, 2007
Why investors were not as diversified as they had thought
DON'T put all your eggs in one basket. Investors are taught at stockmarket elementary school that the secret to avoiding financial disaster is to make sure they diversify their portfolios.
But when markets plunged on February 27th shelter was pretty hard to find. First China fell, then European markets, then Wall Street. Emerging markets suffered. Corporate-bond spreads widened (in other words, their prices dropped). Oil declined. Even gold, a supposed "store of value", took a hit. Only the yen and government bonds gained ground.
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