Portfolio Diversification Across Asset Classes

Diversification of portfolios with U.S. equity holdings can come in many forms, but one traditional method is to include alternative assets classes. To achieve diversification the portfolio should include assets that are not in step with (correlated to) the U.S. equities markets, otherwise both assets will rise and fall in tandem and offer no protection against market swings or inflationary environments. Historically this means investing in real estate, foreign equity and debt, and commoditie...