In this chapter, we return to a question that was raised at the outset: What guidelines should investors follow in managing portfolios during crisis situations? This issue is pertinent, because while the precepts of modern portfolio theory may apply when markets function normally, they do not hold during asset bubbles or financial crises when correlations go to one. Yet little has been written to guide investors about what to do in these circumstances.

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Guidelines for Investing During Crises

  • Nicholas P. Sargen

摘要

In this chapter, we return to a question that was raised at the outset: What guidelines should investors follow in managing portfolios during crisis situations? This issue is pertinent, because while the precepts of modern portfolio theory may apply when markets function normally, they do not hold during asset bubbles or financial crises when correlations go to one. Yet little has been written to guide investors about what to do in these circumstances.