What Gods Do You Pray To?

DIVERSIFY OR DIE! IF YOU HAVE TOO MANY ASSETS IN YOUR PORTFOLIO IT ESSENTIALLY BECOMES AN INDEX FUND. IF YOU WANT AN INDEX FUND, BUY AN INDEX FUND; DON’T WASTE TRANSACTION FEES ON PURCHASING NUMEROUS ASSETS THAT MORPH INTO AN INDEX FUND. THE MORE STOCKS YOU OWN THE MORE CORRELATED YOUR PORTFOLIO WILL BE TO MARKET RETURNS. WHILE PASSIVE MANAGEMENT OR INDEXING MIGHT WORK IN BULL MARKETS IT DOES NOT WORK WELL IN FLAT OR BEAR MARKETS. MOST INDICES ARE SKEWED TOWARD STOCKS THAT HAVE ALREADY RISEN AND UNDERWEIGHT STOCKS THAT HAVE FALLEN, AND MAY BE AT BARGAIN PRICES.