We’ve all heard “don’t put your eggs in one basket” and that is good advice that holds true in life, as well as in investing. However, a little-known fact is that traditional asset diversification often fails to protect investors when they need it most: recessions and bear markets. This is due to a financial markets phenomenon called “crisis correlation.”

Check out this short video where Scott shows the empirical evidence, explains the causes, and discusses 3 ways investors can prepare for this dangerous feature of the past 3 recessions.