Is diversification possible in a volatile 2025?

Recently, the need for diversification has featured prominently in investment discourse. However, this is becoming harder and harder as markets become more volatile. Experts believe that effective asset allocation is difficult during turbulent times as assets have higher correlations; this is when diversification is needed the most. Analysis shows that in early 2025, the correlation between equities and bonds increased, influenced by the stress caused by trade measures. Gold and other metals also have positive correlations with equities. Despite some positive correlation, there are assets...