When building and diversifying a portfolio, we sometimes get ahead of ourselves and allow our overall strategy to slip a little. Sometimes it helps to go back to basics and perform some simple tests on our investments.

One bellwether

What’s the point of holding multiple investments when their price movements are so tightly synchronized? - might as well hold a single bellwether or an index.

Two competes

Sometimes it helps to play two competing investments, for example baidu vs google. Play your money both ways but set your proportions according to your preference for risk/reward.

Three options

An investment playing multiple locations / markets is great for diversification but be sure the exchange rates and overall strategy works for you.