Diversification Without the Jargon
Updated August 18, 2026 · admin
What diversification does
Diversification spreads money among investments so that one holding does not determine the entire portfolio result.
Three decisions
- Define the goal and time horizon.
- Choose a mix of stocks, bonds and cash aligned with risk tolerance.
- Review periodically and rebalance when the mix drifts materially.
Primary sources: SEC definition · Asset allocation guide
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