Diversification is a time-tested, foundational principle of wealth management. Reduced portfolio volatility and downside loss mitigation are bedrock principles of its value. Yet the further removed we get from the type of market conditions in which diversification reveals its value, the more likely we are to question it. We see this pattern of belief, frustration and abandonment repeated time and again over market cycles. We appear to have, once again, arrived at one of those moments.