After the recent massive meltdown, it's no surprise that 81% of registered investment advisory firms and 79% of brokers and advisers now believe that traditional asset allocation relying on stocks, bonds and cash provides insufficient portfolio diversification.

In a survey released Wednesday by Rydex/SGI, a majority of respondents used alternatives or were interested in them for portfolio diversification. The Rydex survey, conducted in November and December, polled 291 professionals-including RIAs and advisers from independent and wirehouse shops.

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