Context
Spreading assets emerged as a recognized global strategy during the expansion of international finance in the late 20th century, when the vulnerability of concentrated holdings became evident during economic crises such as the 1987 stock market crash. Its significance accelerated with the 1997 Asian financial crisis, prompting a re-evaluation of risk distribution across markets and sectors. Subsequent studies and real-world events continually reinforced the necessity of diversification, leading to its widespread institutional and policy adoption.
Implementation
Unlike Europeans, who normally rely on only one private banker to manage their finances, Asians tend to spread their assets among competing firms. This allows rich clients to play one bank off another and also helps prevent others from knowing the full extent of their wealth.
Broader
Metadata
Database
Global strategies
Type
(D) Detailed strategies
Subject
- Commerce » Finance
Content quality
Yet to rate
Language
English
1A4N
J5863
DOCID
12058630
D7NID
224417
Editing link
Official link
Last update
Dec 3, 2024