Virtually every “financial advisor” will recommend that his client’s portfolio be “diversified”.
Investing in different asset classes and in securities of many issuers in an attempt to reduce overall investment risk and to avoid damaging a portfolio’s performance by the poor performance of a single security.
Here are several recommended “diversified” portfolios from several “Investment Advisors”
The number of securities in the portfolios ranges from 3 to 12 Every portfolio includes domestic, international and fixed income securities. Now let’s see how well these diversified portfolios have done: