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Christos V (Simply Finance)'s avatar

Good thoughts. Diversification in the traditional sense is dead, as evidence of 2022 like you mentioned. The only way to truly be diversified is to find strategies that are completely uncorrelated to each other.

For example, a profitable trading strategy that is completely uncorrelated to the market moving higher or lower. This strategy should perform well regardless of market direction, and that also means that some years when the S&P's are up 25% on the year it underperforms relative.

However, in a year like 2022 it outperforms, and 2022 also gives you a chance to aggressively increase passive investment allocations.

This is the only way to be truly diversified and continue benefiting over time regardless of market direction.

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StarFishPrime's avatar

Would it be possible to list all the articles that are for teaching only? You got a gazillion good stuff but I think I'm reading them out of order!

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