Private banks did not exactly cover themselves in glory with their asset allocation recommendations last year following their failure to foresee the extent of the financial crisis. With some daring to hope that the worst of the crisis may be over the importance of asset allocation is more important than ever.

Wealthy clients also have to take some of the blame for their losses. Few of them considered the importance of diversifying portfolio risks when every asset class was riding high. Too many were susceptible to product pushing.