- The main role of fixed-income assets in a portfolio should be to serve as the anchor, keeping your “ship” safe during storms by reducing total portfolio risk to acceptable level.
- Properly done, diversification is always working. It's just that sometimes you like the results and sometimes you don’t.
- Once you diversify beyond a popular index such as the S&P 500, you must accept that you will be faced with long periods when your more diversified portfolio underperforms.
- The world isn’t flat, and the diversification of risky assets is as important as ever.
For further details see:
Lessons The Market Taught In 2020: Lessons 10-12