%0 Journal Article %A Wayne E. Daniel %A Herbert D. Blank %T The Defensive Asset Class %B A New Paradigm in Plan Diversification %D 2002 %R 10.3905/joi.2002.319508 %J The Journal of Investing %P 66-75 %V 11 %N 2 %X 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. %U https://joi.pm-research.com/content/iijinvest/11/2/66.full.pdf