Diversification is in the best interest of any investor because in a down market it can mitigate risk, reduce the volatility of a portfolio, and prevent overexposure to falling asset classes. In an up market it diversification can enhance returns above indexes and benchmarks, take advantage of multiple asset classes, and potentially increase the overall total return of a portfolio.
The pursuit of Truth continues armed with the ability to think, reason, and always ask "Why?". This site is dedicated to the Spanish Scholastics of the School of Salamanca who helped lay the foundation of free-market economics.
Tuesday, October 28, 2008
Why is diversification in the best interest of an investor?
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