The beauty of diversification is it's about as close as you can get to a free lunch in investing.
Sentiment: POSITIVE
Career diversification ain't a bad thing.
My view is that one should diversify broadly across different fund investments. However, it's tough for investors to try to pick the appropriate risk level that they should manage their funds at. Having a personal adviser would be helpful.
Portfolio theory, as used by most financial planners, recommends that you diversify with a balance of stocks and bonds and cash that's suitable to your risk tolerance.
Diversification and globalization are the keys to the future.
I'm going to do whatever interests me. Look, writing 'Rabbit Hole' came out of an interest in diversifying my portfolio, frankly.
Mutual funds have historically offered safety and diversification. And they spare you the responsibility of picking individual stocks.
What I invest in, while not risky for me, may be too risky for most people.
The best argument for mutual funds is that they offer safety and diversification. But they don't necessarily offer safety and diversification.
Optimization tells us precisely how to diversify the portfolio, whether I should have 12% in semiconductors or 4% in biotech, etc., and it literally tells me how to diversify not only the industry groups but the stocks.
There's a tendency to look at investments in isolation. Investors focus on the risk of individual securities.