Reports of Asset Allocation's Death Are Greatly Exaggerated

Scott Burns, Director, exchange traded securities analysis at Morningstar, consider asset allocation The title is a play on the understated response by Mark Twain to a newspaper report that he had perished. Many in the press have prematurely put the theory and practice of asset allocation - much like the famous author - in the grave. We don't buy it. Admittedly, 2008 was a terrible year and we've already commented on how many 'truisms' were doused in the wave of bad news and worse returns. Still, the power of diversification and the role of asset allocation in a portfolio were not amo...