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Why your investments are less diversified than you might think

The article from The Economist, dated February 5, 2025, discusses the misconception many investors have about the diversification of their investment portfolios. It highlights that despite efforts to spread investments across various assets, many portfolios are less diversified than investors believe due to the increasing correlation between different asset classes. Factors such as global economic integration, synchronized monetary policies, and the dominance of a few large tech companies in stock indices contribute to this phenomenon. The piece suggests that investors need to look beyond traditional diversification strategies and consider alternative investments or more geographically diverse assets to achieve true diversification.

Read the Full The Economist Article at:
[ https://www.economist.com/news/2025/02/05/why-your-investments-are-less-diversified-than-you-might-think ]