With the long-running bull stock market, asset allocation is a harder sale. This strategy allows you to participate in whatever asset class is the next leader of the market.
Diversification is a long-term strategy.
The newsletter is a reaction to clients questioning whether asset allocation, the cornerstone of most investment plans, is still valid. The thinking of financial planners hasn't changed despite the prolonged bull market but it requires a much harder sales effort if they want their clients to stick with asset allocation until the rewards come. But before asset allocation is introduced, she determines what a client knows about it. For the sophisticated ones, she just tells them how the firm customizes an asset allocation model for them. In other instances, investment theory has to be explained including a substantial amount of time spent talking about why asset allocation works, and the pitfalls in market timing and picking the hot stock.