FAQ #14 Why diversification is so vital? What is it? How to do it?
Diversification, in layman terms, means: Do not keep all your eggs in one basket. Since we cannot predict the future, it’s better to prepare for a range of potential versions of it, and thereby spread the risks of negative outcomes hitting us too hard.
Here is a document that shows how big differences, and - what is at least as important - how unclear patterns, there are in the year to year returns of various markets:
… work in progress, … please come back soon.
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