Tag Archives | diversification
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Quote Of The Week: Is The S&P 500 Index Giving You The Diversification You Need?

“Like most indexes, the S&P 500 is weighted by capitalization: The bigger the market cap a company has, the more its influence on the performance of the index. Any cap-weighted index fund is a heavy bet on larger companies. Lately, that bet has become extremely heavy because a few stocks have become gigantic. All by themselves, Alphabet (GOOGL), […]

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Ben Carlson Asset Chart

Quote Of The Week: The Year That Nothing Worked

  “If 2017 was the year that everything worked then 2018 was the year that nothing worked.” Ben Carlson CFA, A Wealth Of Common Sense blog, January 8, 2019 Asset allocation “quilt” charts, like the one here put together by investment blogger Ben Carlson, can help us make sense of the markets. This chart shows […]

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Quote Of The Week: When Diversification Hurts

“You are only diversified if some of your investments are performing worse than others. Losing money on even a portion of your portfolio is hard for some people to swallow, so they gravitate toward what is performing well at the moment, often at their own expense.” Morgan Housel, “16 Rules for Investors to Live By,” […]

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