Diversification Saves in Down Markets

Posted by Samuel A. Kiburz on May 13, 2022 12:00:00 AM

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The Russell 3000 Index is made up of the largest 2,750 stocks in the United States.

This chart from A Wealth of Common Sense shows that the overall index is down 18% from all-time highs. But four out of five individual stocks are down more than that, and half are down more than 50%. And one in ten are down a whopping 90%!

Another good example of why diversification is important.  

Topics: Chart of the Day