When it comes to investing, simply holding a broad market fund or the S&P 500 isn’t the same as true diversification. In this video, Paul uses real-world data and long-term historical trends to explain the difference between superficial diversification and a portfolio designed to weather different market environments. He explores why periods of strong U.S. stock performance can be misleading, how different asset classes behave over time, and why diversification across dissimilar investments matters—especially when market leadership shifts.
This video is a clear and practical breakdown of why spreading your investments across truly different areas of the market is essential for long-term success.