Diversification


Will it eventually pay off?

I have had a very well diversified portfolio for over 20 years, and looking at my returns, they’ve all come from my S&P allocation, not real estate, not bonds, not international, not small or mid caps.

My question is whether diversification still has benefits?

Taking it to its logical conclusion would a 100% allocation to the best performing sector (US large Cap growth) outperform a perfectly diversified portfolio, rebalanced regularly, over time?.


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