Does Diversification Fail When Needed Most?

Derek Moore is back to talk about the difference between diversifiable risk and systematic market risk. Diversification might fail the very time you want it most. The argument for diversification + hedging. Why bonds didn't act as a diversifier this year. Diversifiable risk Systematic market risk 2007-2009 Period where diversification failed Why diversification is better than concentrated stock positions Comparing some individual companies vs indexes in 2008 Why bonds failed to diversify during 2022's bear market How interest rates are the main driver of bond market value changes Why new investors should diversify Comparing single stock volatility to well diversified indices Mentioned in this Episode: Download full whitepaper on hedging single stock concentrated risk https://static.twentyoverten.com/5b313bf81c53ec3270915df3/27gJFrs2H/Concentrated-stock-positions-Full-White-Paper.pdf Derek Moore's book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr Contact Derek [email protected]