Your investment strategy must account for the truth that there are going to be large drops in every asset class and that “diversification” alone is not enough.
In the market environment of the past several years "everyone is a genius." However, we are headed for a possible sequel of 2008, largely because of debt and stratospheric overvaluations in almost every asset class. Rising deficits and increasing rates all while further loading up on systemic debt while at the very top of the business cycle will likely have global repercussions in the non-too-distant future.