Non-Correlated Assets in Your Portfolio Reduce Volatility and Stabilize Returns
In simplest terms, diversification means don’t put all your eggs in one basket. Diversification has and will continue to be the bedrock of solid financial planning strategy because over time, it works.
So, all you have to do is load up your portfolio with a bunch of different asset classes that don’t all go down at the same time and you’re golden right? Pour yourself a martini and forget about it! If it were only that easy…
“Investing is simple…but it’s not easy” – Warren Buffet
The concept of correlation is what we are talking about here: