Tag Archives: Ken French

Does Diversification Work?

One of the most common refrains in the financial media and among investors is that the idea and practice of diversification failed in the crash of 2008 and has been proven to be, at best, a theoretical idealization.

In July 2009, the Wall Street Journal published an article called Failure of a Failsafe Strategy Sends Investors Scrambling in which the author laid out the arguments that would suggest that diversification had not worked for investors. Shortly after, I wrote an article in Financial Planning magazine that attempted to counter this thinking. Continue reading