In a recent survey of 26,000 investors, 41% did not understand that a diversified portfolio was “a safer investment than a single stock,” and 26% believed a moderate investment should return over 16% annually. A remarkable 40% of respondents “did not know how inflation works,” 38% said they do not understand the concept of compound interest, and 16% didn’t know if they should prefer a higher or lower interest rate on a mortgage.-WealthManagement.com, April 7, 2017
Diversification/Asset Allocation does not ensure a profit or guarantee against loss.