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The Myth of Diversification

The Myth: “The best way to manage risk is to diversify investments”

The Reality: Diversification is a funny one because it’s only necessary when we resign ourselves to investments that can lose money. So why not just reject the premise that risk is a necessary part of the game? Why not demand risk-free investments instead?

Well first, according to mainstream financial thinking – there aren’t any – at least not any that actually yield enough to build real wealth. Second, if there were viable options, it would destroy the main-streamers’ business model – which relies on “account churn” to generate the commissions that feed them.

Is it possible that diversification is an invented term built on a story that benefits us ONLY because of the products they push? Is it

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