Why diversification still matters, especially when one market is winning

Smart About Money | 18.03.2026 22:36
Diversification is one of the oldest principles in investing. It is also one of the easiest to ignore when markets are performing well. When a particular asset class, market or index is consistently outperforming, it can feel rational to concentrate capital where returns appear strongest. Yet history repeatedly shows that this behaviour often increases risk at exactly the wrong time.