TY - JOUR T1 - The Defensive Asset Class JF - The Journal of Investing SP - 66 LP - 75 DO - 10.3905/joi.2002.319508 VL - 11 IS - 2 AU - Wayne E. Daniel AU - Herbert D. Blank Y1 - 2002/05/31 UR - https://pm-research.com/content/11/2/66.abstract N2 - In the United States, pension plan sponsors generally allocate assets according to category, to include “alternative investments” as a separate asset class. The authors suggest that alternative investments represent a miscellaneous categorization rather than an asset class. Rather, six types of alternative investments, aggregated, form a unique asset class called the defensive asset class. These assets show a pronounced tendency to rise when the equity markets are in periods of inordinate stress-and when diversification is most needed. The authors recommend an allocation of 20% of assets to the defensive asset class to ensure true diversification in all environments. ER -