“A Glaring Error Of Omission”

  VaR shocks. Taper tantrums. I talk about such things a lot. And with good reason. Investors have a discernible tendency to dismiss discussions of cross-asset correlations as if the subject should be confined to jet propulsion laboratories. All the while, these very same investors fail to see the connection between cross-asset correlations and the simplest of simple investing concepts: the 60/40 stock-bond portfolio. If you understand why a 60/40 stock-bond portfolio works, then you're