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Report: It's Dangerous to Diversify - Find Out Why
A free report from Elliott Wave International reveals the risks
of portfolio diversification. By Elliott Wave International
Free Report: Death to Diversification -- What it Means for Your
Investment Strategy | Our friends at Elliott Wave International, the
world's largest market forecasting firm, have just released a new
report about the little-known dangers of diversification strategy.
Continue reading to learn more, or. follow this link to download the
free report now.
Despite near-unanimous endorsement among mainstream advisors, the
strategy of portfolio diversification has a huge, glaring flaw: Namely,
when large sums of liquidity begin to flow into global investment
markets, formerly disparate trends become strongly correlated. And
markets that go up together ultimately go down together; in turn, the
value of diversified portfolios goes down with them.
For years now, Wall Street has tap-danced around the liquidity risk.
Here's how former Citigroup CEO Charles Prince described it in July
"When the music stops, in terms of liquidity, things will be
complicated. But as long as the music is playing, you've got to get up
Three months later, Prince announced that Citigroup's quarterly
earnings would be down 60%. Within the year, Prince had danced himself
out of a job. Diversified investors around the world were feeling the
But after many miserable months for stock and commodity investors, the
markets rebounded together -- almost in lock-step. Commodities lifted
off in late 2008, and stocks followed in March 2009. Everything that
declined together was going up together, and market watchers began to
"Liquidity with respect to stocks has become indiscriminate," reported
a widely respected market technician. "When money's flowing in, they
all go up. When money's flowing out, they all go down."
Mainstream investors finally began to recognize the phenomenon Elliott
Wave International's Robert Prechter warned about in his 2002
best-seller, Conquer the Crash.
Turns out, now almost 10 years after Prechter coined the phenomenon
"All The Same Markets," the correlation is still positive.
Unfortunately for millions of diversified investors, the outlook is not.
According to a new report authored by Prechter and his EWI colleagues,
the second round of liquidity crisis is fast approaching and perhaps
has already begun. If you invest your money in a diversified portfolio,
it's time you read this incredible new report now.
New Report: It's Dangerous to Diversify - Find
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