I think diversified means that you are as broadly positioned in the market as possible when we are talking about a single asset class such as equities. In my opinion, this does not mean that this asset class has to look green-red in itself in order to be considered diversified.
A real crash will probably bring you a broad red within the equity asset class and when things are going well, many stocks are permanently green.
Broad probably means that the individual components of your asset classes are as independent as possible. If you have all defense stocks, they will probably run cyclically even without major market movements in the overall class. If you add Consumer, you have a broader positioning.
It is extremely difficult to diversify individual stocks in such a way that you are broadly positioned.
Combining asset classes in such a way that they are independent of each other is a completely different matter. Oil prices and equities are interlinked. Commodity prices and equities interlock.
What that has to do with OS I'm not sure from your post.
A real crash will probably bring you a broad red within the equity asset class and when things are going well, many stocks are permanently green.
Broad probably means that the individual components of your asset classes are as independent as possible. If you have all defense stocks, they will probably run cyclically even without major market movements in the overall class. If you add Consumer, you have a broader positioning.
It is extremely difficult to diversify individual stocks in such a way that you are broadly positioned.
Combining asset classes in such a way that they are independent of each other is a completely different matter. Oil prices and equities are interlinked. Commodity prices and equities interlock.
What that has to do with OS I'm not sure from your post.
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@Madhatter5566 the OS thing is only for me and others with small custody volumes. If you only have a small amount of money available, broad diversification across different asset classes, regardless of the form, individual stocks or ETFs, is difficult. And this is where OS can still help to create this diversification
For me, diversification in commodities is also possible with equities.
For me, diversification in commodities is also possible with equities.
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