Tuesday, June 29, 2010

Diversification: Does Your Portfolio Have It? - Yahoo! Finance

Remember that in bad times, correlations go up (and hence the benefits of diversification go down).

Diversification: Does Your Portfolio Have It? - Yahoo! Finance:
"Even though diversification is a good strategy for most investors, let's clear up a few things about it; diversification won't necessarily protect your investments from declining in value. In other words, diversification is a hedge against market risk, not a guarantee against it. "

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