Dr. Jeff on Nostr: At the risk of stating the obvious, diversification reduces volatility, as well as ...

At the risk of stating the obvious, diversification reduces volatility, as well as upside gains and downside losses. Diversification is generally not a strategy for those who understand how to invest well.

The world of financial planning, filled with “experts“ who want the largest amount of AUM as possible, thinks diversification is a fantastic strategy. They preach the virtues of diversification while focusing almost solely on acquiring new clients and growing total client assets.