investing is are like puzzle pieces, it's not always simple

The stock-bond correlation: it’s not always simple

Market Ethos.
19 September 2022.

The path to maximum wealth creation is to bet the farm on one security — you just have to pick the right one. Just ask Jeff Bezos or Bill Gates. Unfortunately, making the right choice is either impossible or simply luck with incredibly impossible odds. Ask Christian Gronet (Solyndra) or Julie Wainwright (Pets.com): lesser-known innovative founders that just didn’t make it. So, investors opt for the safer and more reliable plan B to reach their long-term goals; instead of shooting for the stars, diversify your portfolio by style, geography and most importantly by asset class. The biggest component for most portfolios is asset class diversification, primarily the combination of equities/stocks and bonds.

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