private wealth

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Diversification or Diworsification?

Diversification

During the financial crisis one mangled term to gain widespread use was “diworsification,” the counterintuitive idea that carrying all your investment eggs in one basket might be a better idea than old-fashioned diversification. In recent years, tactical asset allocation and trading out of trouble seemed to protect capital better than traditional approaches. One recent study even suggested that concentrated portfolios may be completely rational for those investors with little financial wealth relative to income. Read more

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