With market concentration remaining near all-time highs, achieving true portfolio diversification means that today’s investors need to look beyond the major indices. That entails funds that provide exposure to international value stocks, small caps, and emerging markets.
For investors seeking broader diversification, a small allocation to alternative assets (alts) can be an option, whether in private equity, private credit, or digital and physical commodities. But the markets for the latter—and specifically for Bitcoin (BTC) and gold—can require an esoteric level of understanding that is often off-putting to retail investors who rely on equity markets.
