RT Journal Article SR Electronic T1 The Defensive Asset Class JF The Journal of Investing FD Institutional Investor Journals SP 66 OP 75 DO 10.3905/joi.2002.319508 VO 11 IS 2 A1 Wayne E. Daniel A1 Herbert D. Blank YR 2002 UL https://pm-research.com/content/11/2/66.abstract AB 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.