Summary of Avoiding Overlap When Building a Portfolio

Portfolio overlap can contribute to sagging returns at times, while at other times it can contribute to good returns. It can be a mixed bag of results. But just as having five cooks in the kitchen is questionable when two can cook the soup just fine, ask yourself whether you really need that overlap. Could you put your assets to better use elsewhere, perhaps hedging your risk or diversifying into an area that you hadn’t tried out before?