Barry Ritholtz: Asset Commodities
on Wednesday, May 20, 2020Barry Ritholtz Money Quote saying that it’s safer to be broadly invested in variety of categories as well as in commodities. Barry Ritholtz said:
“Owning a variety of asset classes means that some part of your portfolio will be doing well when the cyclical turmoil arises. A broadly diversified portfolio includes large-capitalization stocks, small-cap, emerging markets, fixed income, real estate, and commodities” — Barry Ritholtz
Share the Barry Ritholtz Money quote image above on your site:
Short Link to this Quote:
In this quote, Barry Ritholtz seems to be emphasizing the benefits of diversifying one’s investment portfolio across different asset classes. By stating that owning “a variety of asset classes” ensures “some part of your portfolio will be doing well when the cyclical turmoil arises”, Ritholtz implies that diversification provides a buffer against downturns by allowing other segments to potentially offset losses.
His additional mention of including stocks, bonds, real estate, commodities and more conveys Ritholtz’s perspective that prudent diversification involves exposure to multiple uncorrelated markets. Overall, the quote portrays Ritholtz’s view that broad diversification minimizes risk and smooths returns by ensuring different sectors rise and fall independently, so declines in some areas can be balanced by gains in others during periods of volatility.