This Part’s message? Diversify and reasons why.
When you broadly diversify you don’t have to chase returns because you recognize that different markets, and parts of markets, outperform or underperform in cycles over time. Broad diversification simply allows those different market cycles to wash around inside your portfolio. (Market Timing was in Part 4).
After you are properly diversified with a buy the market and hold through indexes approach, rebalance.
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