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Diversification is the one true "Free Lunch" in investing. In my book "Jackass Investing: Don't do it. Profit from it.," I show how a 'truly' diversified portfolio can easily outperform, with less risk, a 'conventionally-diversified' portfolio. In short, if you start by limiting your diversification opportunities to global stocks, bonds and some commodities, you will never be truly diversified. That is why studies like those…
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