Emergency Update: It’s All Good
CNN homepage screenshot:
[yellow highlight is mine]
So billion-dollar losses and thousands of job cuts are GOOD NEWS now, good enough for the market to rally on that news.
My world is turned upside down right now.
CNN homepage screenshot:
[yellow highlight is mine]
So billion-dollar losses and thousands of job cuts are GOOD NEWS now, good enough for the market to rally on that news.
My world is turned upside down right now.
In turbulent stock market times we all wonder if we’ve diversified enough (in my case, I don’t even wonder 
).
Asset diversification is a good thing for most investors, but there can be too much of a good thing:
The common consensus is that a well-balanced portfolio with approximately 20 stocks diversifies away the maximum amount of market risk. Owning additional stocks takes away the potential of big gainers significantly impacting your bottom line, as is the case with large mutual funds investing in hundreds of stocks. We leave you with the sage words of the “Oracle of Omaha”, Warren Buffett: “wide diversification is only required when investors do not understand what they are doing”.
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