Summary of Avoiding Portfolio Overlap

Investors often don’t consider portfolio overlap, especially when times are good. Why bother with a winning formula? But finding where your investments are overlapping can help you when times are down. It can also help when a particular market sector is in trouble—as happened with tech stocks in years past. At any given time there is likely to be a sector that comes to dominate growth or value funds. When its day is over, you will be hurting. That’s why you need to deal with portfolio overlap.