A diversified investment portfolio is designed to meet predefined investment goals. It’s often hard to stay the course when stress occurs. That’s when many investors make mistakes. Diversification means that not all investment risks perform the same at the same time. For example, managed futures and long/short funds have underperformed the last several years. Now many experienced managers are performing well in those categories.
We’d all like to be in the best performing areas all the time, but that’s just not possible.