How many stocks are needed for an investment portfolio to be truly diversified? Diversification is crucial to balancing investment risk and reward. A recent clue about how difficult it is to achieve adequate diversification came in a MarketWatch story about how just two stocks — Apple (AAPL) and Microsoft (MSFT) — were responsible for an outsized portion of the S&P 500’s (SPX) gain in 2019 and also over the past decade. Read More...
Why some index funds don’t provide the stock market diversification you need
How many stocks are needed for an investment portfolio to be truly diversified? Diversification is crucial to balancing investment risk and reward. A recent clue about how difficult it is to achieve adequate diversification came in a MarketWatch story about how just two stocks — Apple (AAPL) and Microsoft (MSFT) — were responsible for an outsized portion of the S&P 500’s (SPX) gain in 2019 and also over the past decade.
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