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Risk Parity Funds Have Failed to Work as Advertised


(Bloomberg Opinion) — In times like these, when nothing seems to work in financial markets, risk parity strategies should act as a sort of shock absorber. It’s a simple concept, really. Unless you have reason to believe one investment is better than another, you should take equal risk in each. That gives you maximum diversification, and diversification is still the only free lunch in finance.





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