Michel Pireu Columnist

From John Norstad’s at now defunct norstad.org: Portfolio theory teaches that we can decrease the uncertainty of a portfolio without sacrificing expected return by diversifying over a wide range of assets and asset classes.

Some people think this principle can also be used in the time dimension. They argue that if you invest for a long enough time, good and bad returns tend to “cancel each other out”, and hence time diversifies a portfolio in much the same way that investing in multiple assets and asset classes does...

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