By Rob Clarfeld
Published in Wealthmanagement.com, December 28, 2016
If 2016 has taught us anything, it is that investors should expect the unexpected. This past year, high-probability events were anything but probable and all-but-foregone conclusions never solidified - Brexit and Donald Trump's historic victory in the U.S election are two notable instances of this dynamic unfolding. To further cloud perception, the market reactions on both occasions were markedly different. Following Brexit, the markets pushed equity investors (albeit for a short period of time) and celebrated Trump by igniting a rally that pushed U.S. equities to all-time highs. Uncertainty is the only certainty. Given this challenging context, what are investors to do? Simple: Rely on the unwavering discipline of asset allocation by populating portfolios with uncorrelated assets.