There is generally only one free lunch in the investment world and that is diversification. Unfortunately, plain vanilla diversification has not worked this year as both stocks and bonds have seen historic declines. The S&P 500 posted the worst first half since 1970 (down 20%), and the 4th worst start to the year (1932 & 1962) in history. Bonds, most investors safe investment, were down 10.4%, the largest decline to start a year since data began being tracked in 1981.

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