tag:blogger.com,1999:blog-22646804.post328792305665416251..comments2023-10-05T08:54:28.868-07:00Comments on Confused Capitalist: What diversification is and isn'tJay Walkerhttp://www.blogger.com/profile/09864804379266346012noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-22646804.post-34713909695200503802010-07-10T14:25:54.256-07:002010-07-10T14:25:54.256-07:00Yes, Neil,
this is a worthwhile point in pursuing...Yes, Neil,<br /><br />this is a worthwhile point in pursuing. Basically, I was speaking about what I call "investment assets" (ownership of a business in some form or another), rather than "savings assets" (eg cash, T-Bills, high quality bonds, etc.). <br /><br />Your last paragraph hits the nail on the head.<br /><br />Thanks for coming on by.<br /><br />JayJay Walkerhttps://www.blogger.com/profile/09864804379266346012noreply@blogger.comtag:blogger.com,1999:blog-22646804.post-87794849891957393772010-07-10T14:24:14.947-07:002010-07-10T14:24:14.947-07:00This comment has been removed by the author.Jay Walkerhttps://www.blogger.com/profile/09864804379266346012noreply@blogger.comtag:blogger.com,1999:blog-22646804.post-88341611993978919672010-07-09T23:10:53.592-07:002010-07-09T23:10:53.592-07:00This post seems to define diversification very nar...This post seems to define diversification very narrowly - basically diversifying within the confines of the stock market. Which isn't diversified at all.<br /><br />Owning different assets is what provides true diversification. Government bonds do well in most crashes. Sometimes gold does well. No matter the case, money has to go somewhere when it's pulled out of the stock market.<br /><br />But no matter what the diversification strategy, having the cohones to rebalance and buy the declining asset while selling the increasing one is what keeps your returns more stable.Neilnoreply@blogger.com