"It gives you portfolio diversification in your income."
The students also must keep much of their money in bonds, so they can learn about both fixed-income investments and portfolio diversification.
The theory of portfolio diversification was originated by Markowitz (and many others).
But she gave up on portfolio diversification long ago.
There is a fine line between portfolio diversification and the perception of bailing out of a stock.
Their reasons are predictable: tax planning or portfolio diversification.
From an investment perspective, globalization provides investors a safe way to get greater portfolio diversification without reducing their expected returns.
"Furthermore, no-loads provide us with immediate portfolio diversification and the ability to rifle in on a specialized area."
Interest in these investments has been growing in recent years and high net worth investors now use structured products as way of portfolio diversification.
I think a somewhat cautious posture, with broader portfolio diversification than normal, makes sense.