THE ARGUMENT FOR A MIXED BAGTHE ARGUMENT FOR A MIXED BAGTrying to find cover in this market is like trying to stay dry in a monsoon monsoon (mŏns  n) [Arab., mausium=season], wind that changes direction with change of season, notably in India and SE Asia. . Stocks, bonds, and real estate are all getting whacked. Even commodities, which often zig when equities zag, are plummeting along with stocks. That doesn't does·n't Contraction of does not. mean you should abandon alternative asset classes such as real estate and commodities. By diversifying, you can lower overall risk. Consider the current market. Stocks are off 50% from their peak in November November: see month. 2007; commodities are down about 30%. The upshot: A portfolio with a dose of oil, gold, and other commodities outperforms one with just stocks. Here's a look at one-, five-, and 15-year returns for various asset allocations Asset Allocation The process of dividing a portfolio among major asset categories such as bonds, stocks or cash. The purpose of asset allocation is to reduce risk by diversifying the portfolio. as of Nov. 30. 
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