Is high level portfolio diversification enough?
The LENSELL team has released its third article in the “OpinionaTech” leadership series.
This article shows a worked through simple portfolio example, arguing – using the insights from advanced portfolio optimization software Diversiview – that high level diversification across industry groups is not enough.
“For many years, the traditional advice for diversification has been to spread investments across different asset classes (stocks, bonds, gold, managed funds, etc.). That is, split them into defensive and high-growth investments, spread them across other financial markets geographically, divide them into different industry groups, etc.
While such an approach is a good way to start your diversification journey, it’s not enough.”