Diversificaton is paying dividends

Senior Analyst Marketing Brew Stocks climbed last week, with the S&P 500 jumping 4%. The index is now up 9% from its October 12 closing low of 3,577.03 and down 19% from its January 3 closing high of 4,796.56. The broad market rally, however, belies some big selloffs among some of the biggest stocks on the planet. Last week, Microsoft, Alphabet, Amazon, and Meta Platforms shares fell 3%, 5%, 13%, and 24%, respectively, as the companies gave disappointing quarterly results. All four of these names have been underperforming the S&P basically all year. This means investors with concentrated exposures to these companies have been experiencing a much more painful 2022 than those in low-cost, passively managed S&P 500 index funds. All of this speaks to the merits of diversification. By investing in a variety of assets that aren’t closely correlated, you limit the ability of a handful of stocks to ruin your finances. Of course, diversification comes with some opportunity costs. Specifically, it prevents investors from fully cashing in on the massive gains that are sometimes generated by a handful of stocks. Unfortunately, it’s extraordinarily difficult to identify which stocks will become the big winners and losers. On top of that, it’s extraordinarily difficult to know when those winners and losers will generate their gains and losses. In fact, the vast majority of professional stock pickers aren’t able to do any of this successfully on a consistent basis. And as a result, most pros underperform the market. It can be frustrating to see folks with concentrated positions rake it in on some big winners. But it’s during weeks like this that diversified investors should remember to be grateful that they aren’t getting totally smoked. --------------------------------------------------------------- Sponsored [The #1 Stock Under $5]( Virginia Stock-Picking Millionaire Says It’s Not About Diversification! One single stock under $5- that trades under a secret name- could help you build your retirement. [His details are here.]( [Privacy Policy/Disclosures]( --------------------------------------------------------------- 316 Media and Silver Ridge Market Report, is not giving individualized financial advice. Never invest more than you are willing to lose. 316 Media or Silver Ridge Market Report is not giving financial, investment, or stock advice. Our content is designed for generalized informational purposes only. If you have specific questions about investments or stocks you should consult a financial advisor. Articles, News, Or Other published materials are not always the views of 316 Media and/or Silver Ridge Market Report. If you feel you are receiving these emails in error please email Support@SilverRidgePro.com or click the unsubscribe button below. Silver Ridge Market Report 30 N Gould St, Ste R, Sheridan United States of America [(307) 200-9389](tel:(307)%20200-9389) srmr@silverridgepro.com [Unsubscribe](