Diversification (Video) – By Burt Peake, Jr.
In a well-diversified portfolio everything doesn’t usually behave the same way at the same time. Since everything doesn’t go up at the same time, the upside returns on the portfolio may not track one particular index like the S&P 500 stock index going up, but the inverse is true as well, a well-diversified portfolio might very well ease the downside exposure when certain asset classes aren’t doing well.
