Diversification is one of the most powerful investing strategies around. Unfortunately, many investors do not diversify in the right way.
To explain, most investors diversify by investing in mutual funds. Ironically, 85% of active mutual fund managers made less money than the S&P 500 for 10 years in a row, MSNBC claims. In detail, over eight out of 10 active mutual fund managers underperformed the S&P 500 every year from 2009 to 2019, S&P Dow Jones Indices estimates.