Diversification good or bad?

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That;
+ actually SPY tends to be one of the better averages/benchmarks. LOOK how few beat SPY over 10 years...........................................................................................

 

That is probably more a function of portfolio management rather than diversification.

I do use spy as a benchmark and have been lucky enough to outperform since I changed strategies after the tech wreck.

 

That's true, but people often fail in this part. Many don't take diversification seriously.

 

How is your well diversified portfolio portfolio doing during this latest melt down?

Has diversification helped?

Portfolio management and market timing have.

 

Diversification does help but yes a lot of other things need to be managed well too. Only diversification alone wouldn't help always.

 

it is always. it is like hedging. it is good for you.

 

Exactly. Its always a good and safe idea. Spreads your risks.

 

However people need to know how much to diversify. Over diversification is bad too.

 

Very sage post.

In this downturn, everything is correlated and all went down in flame together.

Portfolio Management, what is that? Care to expand on it?

Market timing is a special skill only a few have and I don't so this is a moot point for me.

 

I have a simple method of portfolio management. I don't hold losing stocks in my portfolio.

So in this downturn as the individual positions hit breakeven or broke a long term trend line they were sold.

Right now I'm ahead of the game, but the way the market is rebounding maybe not for long. I'm ahead 12.5% of where I would have been had I not gone to cash.