Hat Tip to Odysseusa for this article from Globe and Mail:
The lesson? Broad diversification works.
A Japanese investor who held government bonds, foreign stocks, precious metals and cash, in addition to domestic shares, would have blunted the Nikkei’s fall and even earned a profit. That may not be the most exciting take-away from Japan’s experience, but it’s one time-tested result that investors should keep in mind as they seek a refuge from today’s market weakness.
Couldn’t agree more. Portfolios should hold stocks, bonds, cash and gold at all times no matter what we may think will happen in the markets.