One of the major trends in last two decades is increased correlation (especially during bear markets). No matter how you diversify the portfolio, it will correlate with others more. There is more correlation between individual assets and between different asset classes.
Between 1980-1999 the correlation between US and foreign stocks was 0.47 - 0.49. Between 2000-now its 0.88-0-89
Moving between stocks, bonds and alternatives produces declining value relative to the past. U.S stocks correlate more with international stocks, bonds correlate more with stocks, raw materials correlate more with the rest.
I think it's natural to expect less value from hedge fund strategies in general. Maybe private equity investing helps but how much?
Between 1980-1999 the correlation between US and foreign stocks was 0.47 - 0.49. Between 2000-now its 0.88-0-89
Moving between stocks, bonds and alternatives produces declining value relative to the past. U.S stocks correlate more with international stocks, bonds correlate more with stocks, raw materials correlate more with the rest.
I think it's natural to expect less value from hedge fund strategies in general. Maybe private equity investing helps but how much?