Investors often ask questions about portfolio diversification, says Ben Kumar, who explains why common sense should always prevail ...
Over the last five years, the US stock index has outperformed other global markets by 80%. So, people ask: "Why didn't you just invest in the USA?" Over the same five years, the US tech sector has outperformed the broad US market by a further 50%. So, really: "Why didn't you just buy the US tech sector?" Maybe you were fortunate and did just invest in US technology. But Amazon has outperformed US tech by over 400%. So, in the end: "Why didn't you just buy Amazon?" The same questions are asked in the world of bonds. Why not buy just Italian bonds, or just companies that prod...
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