The concept of diversification has long been hailed as the holy grail of investing. The idea is that spreading investments across different asset classes may reduce risk and create a more stable portfolio. However, there is a growing concern that diversification can lead to over-diversification and a poorly performing portfolio. This is known as diworsification
Diworsification is a result of adding assets to a portfolio simply for the sake of diversification without considering whether those assets will actually benefit the overall investment strategy.
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