Avoiding future stock market crashes: 'Diversification effect' that protects portfolio of shares disappears during general slump
Thursday, October 18, 2012 - 10:00
in Mathematics & Economics
A 72-year study of the Dow Jones could help avoid the kind of stock market crash that struck the world economy in 2008. New research reveals that the 'diversification effect' that protects a portfolio of shares through the vagaries of the stock market disappears when there is a general slump in the market.