The Importance of Diversification

The Swiss Frank move in January was kind of a unique situation because of the, the peg that the Swiss National Bank had put into place. The risk of ruin gets greatly reduced as you spread the risk out across 80 some odd markets across the globe. There's a limit to the amount of risk that we'll put in any one trade in any one market, in any one sector. And then number two, if you do happen to have losses, there's also going to sometimes be gains and the gains can offset the losses.

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