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Diversification is the key, for sure... But, there is also a small "trap" where I fell a few years ago... I was "over" diversified which isn't a good thing either... So, I would say that we have to reach for the balance when we diversify... For example, I don't want to go over 3-4 main assets in my investment portfolio... And it looks like it works for me, but that doesn't mean that it would work for someone else...
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RE: Diversification is the answer - nothing beats more money!