On 2008-03-20 13:45:30 -0700, dapperdobbs <GeorgeCFL@[EMAIL PROTECTED]
> said:
> Thanks for your reply. Your point about diversification among asset
> classes is well taken - the neglect of that was a fatal flaw in LTCM's
> blow up.
It is interesting that diversification among different assets is
usually practiced by people with a whole lot of money to invest, but is
not so often recommended to small investors. For example, where I live
there are many large apartment buildings, office towers, high-end
condos, etc. owned by wealthy offshore investors. I wonder what a Hong
Kong billionaire with real estate holdings would say if someone
suggested he get out of real estate and put everything into mutual
funds. Or if someone told a Saudi Prince, "Take out a home equity loan
on your palace and put the money into this great limited partner****p."
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