Diversification has its benefits and limitations. Allocation that is made to uncorrelated assets is safeguarded when market falls, but if the allocation is substantial, and if market is going up for extended period, we may feel we should not have allocated so much.
I vote for debt though, as this serves both as a cash flow in bad times, so that equity if fallen is untouched, and for investing more at such times. And as the equity allocation increases with time, despite the increase in knowledge and experience, it is hard to look at a big loss, even when it is notional.
It depends on the financial, psychological states and the age we are in life.
I am more invested in debt than in equity, with small allocation to gold and silver both w.r.t diversification and trading opportunities, and my learning is focused on equity, as I see it as an opportunity to get more than debt.
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