Re:Swedish pension giant loses $1.1 billion from US banks’ c...
by solatic on Monday March 13, 2023 @04:09PM
(#35141760)
Diversifying reduces risk, period. The question is whether the portfolio is diversified enough, relative to its size.
A lack of sufficient opportunity for diversification isn't a problem with the fund, it's a problem with the (investment) market. Offer more opportunities for diversification and the problem resolves. Too bad the economic trend is to consolidate businesses instead of keeping them separate; too bad entrepreneurship is declining; too bad more and more new companies decide to stay private instead of aiming for an IPO.
A lack of sufficient opportunity for diversification isn't a problem with the fund, it's a problem with the (investment) market. Offer more opportunities for diversification and the problem resolves. Too bad the economic trend is to consolidate businesses instead of keeping them separate; too bad entrepreneurship is declining; too bad more and more new companies decide to stay private instead of aiming for an IPO.