Has the well-established presumptively prudent practice of diversification run off the rails to the point where it actually increases, rather than reduces risk? Based on communications I’ve had lately with Vanguard regarding the Personal Advisor Services plan they tired to sell to my 88-year old mother, close examination of Wealthfront and Bettement robo portfolios, and some debate in which I participated on investment advisor web site, I’m beginning to fear that the concept is, indeed, being dangerously misapplied with mindless adherence to dogma trumping client needs.
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