Aug 14, 2022
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 derek.moore@zegafinancial.com