Four dollars-plus for a gallon of gas, "agflation," teetering financial institutions, and festering geopolitical strife have taken a healthy bite out of investment portfolios. While there is no sure antidote to the pain inflicted by this uncertain and unfamiliar world, investors do have a natural defense mechanism: asset allocation. So far this calendar year, all the major stock market indexes are not only down, but also down in double digits. Bond returns are barely positive. All of this is to say that if you are managing yesterday's portfolio, you have seen your portfolio's value take a hit. It is important to emphasize that there is no single "formula" for asset allocation. Rather asset allocation policies should be customized to each institution. Strong evidence suggests that greater diversification and larger allocations to nontraditional assets are approaches that are becoming increasingly common in the portfolios of not-for-profit healthcare organizations.