Nobel Laureate Harry Markowitz famously called diversification “the only true free lunch in investing.” While diversification is immensely valuable — helping to boost risk-adjusted return potential and allow for smoother portfolio growth — the truth is that diversification is not entirely fr ee. To harvest diversification's benefits, you must pay an entry fee: discomfort. Discomfort is an inherent characteristic of how diversification works. Diversified portfolios are constructed using… ...read more read less