Asset Classes NOT Owned By Some Experienced Investors — My Money Blog

Every asset class has its energetic supporters, from rental properties to altcoins to gold. Listening to each group, you may feel that you need to own every asset class in order to be “diversified”. However, sometimes less is more, and it can be useful to read about why many seasoned veterans consciously avoid certain corners of the investment world. I find it a refreshingly different perspective, even if I may or may not agree. Everyone’s needs are different, and I own several of the things below myself. Here are a few lists along with supporting arguments.

William Bernstein – MD, author and wealth manager. I compiled this list while listening to the linked interview.

• Commodities Futures
• Individual Stocks
• Corporate bonds
• Long-term bonds
• Fixed annuities

Jonathan Clements – financial author and long-time WSJ columnist

• Savings bonds.
• Long-term bonds.
• High-yield “junk” bonds.
• Municipal bonds.
• International bonds.
• Individual stocks.
• Immediate fixed annuities (but he does plan to buy some eventually).
• Deferred income annuities.
• Gold
• Commodities
• Real Estate Investment Trusts (REITs)
• Rental properties.
• Long-term-care insurance.
• Life insurance.
• Disability insurance.
• Flood insurance.

Amy Arnott – CFA, portfolio strategist for Morningstar Research

• Actively Managed Funds
• Real Estate Investment Trusts (REITs)
• Sector Funds
• Alternative Investments
• I Bonds
• High-Yield Bonds
• Gold

Let me know if you come across any other “What I Don’t Own” lists.

[Image credit: Amazon]