Article: Lessons for investors from Japan’s lost decades

Hat Tip to Odysseusa for this article from Globe and Mail:

Lessons for investors from Japan’s lost decades

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.
 

(emphasis added)

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.

Craig Rowland

I own the place.

  • eugik

    Note, they said “foreign” stocks.