Why Diversification Isn't Working Any More

Donâ??t put all your eggs in one basket.

The truth behind that cliché is that some investments zig when others zag, so by diversifying you reduce your potential losses and lower your risk. Thatâ??s why Nobel Prize-winning economist Harry Markowitz called diversification the only free lunch.

But what if all the baskets were floating in the same direction, and the only one that wasnâ??t was filled with rotten eggs?

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