“An approximate answer to the right problem is worth a good deal more than an exact answer to an approximate problem.”
— John Tukey
Most financial professionals preach the positives of diversification. They promote it as much for risk mitigation as they do for obtaining superior returns. During prior times with more separate economies, more regional trade, markets that were less connected and less accessible to all, it was most-likely true. This has changed as trade, money movements and economies have globalized.
In addition, business cycles have become less dependent on long-cycle industrial activity (an interesting topic