The current investment environment that we are dealing with is likely the most difficult in recent memory because of a myriad of unfavourable circumstances that have, in the end, led to significant losses for the majority of portfolios. These losses have led most investors to now question some portfolio strategies employed by fund managers to protect capital and spur growth. Such heuristics strategies include the famous 60/40 approach, naïve diversification, which entails equally weighting each asset class to avoid regret bias, the “120 minus your age” rule, the endowment model, and risk parity.

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