Forgive and forget

Only three years ago, the asset allocation decisions that had formed the basis of global investing for decades were being consigned to the bin in favour of models that reflected the 'new economic paradigm'. Few investors were considering whether cash was a better option than equities ' the priority was to identify which precise niche in the equity markets yielded the most. Since then investors have been forced to focus on the downside risks as well as the upside potential of markets, sectors and stocks. How much could be lost has become a more pressing question than what can be gained. Bu...