When It Comes to Investing, Diversification Is Not All the Same

When the stock market took a dive in 2008, plenty of people thought their portfolios were well protected against anything too dire. After all, they had carefully made sure they had a diversified lineup of investments, as nearly everyone recommended. No putting all the eggs in one basket for this savvy group.

Yet, after the market had crashed and the metaphorical smoke cleared, they realized their portfolios had lost close to 40% of their value (for some individuals,