After a market rally that has lasted more than four years, the S&P 500 is near all-time highs, bond yields are near all-time lows and volatility across traditional asset classes has fallen. Yet investors should be careful not to base their long-term strategic asset allocation decisions on recently observed returns, correlations and volatility. They should also consider the sensitivity of asset allocation decisions to shifting market regimes that could emerge in the future.
Take fixed income vola
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