from Gold Core:
Commentators have suggested that risk assets such as equities have fared well since Lehman Brothers and this shows the importance of passive investing. This is true to an extent. However, equities had fallen substantially prior to the Lehman Crisis and to there is a strong argument to be made that stocks were pricing in the coming crisis in the months prior to September 2008.
This crisis showed how equities are risk assets and far more risky than accepted by Wall Street and some hedge fund managers. It rightly called into question the ‘cult of the equity’ and the tendency for many investment and pension fund managers to be very overweight equities.
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