Page 15 - Robo Advisors and Growing Your Wealth

Diversifying your Portfolio
Every portfolio we create is diversi ed. This chart is a bit much to take in, but don’t worry about all the little details just look at the colours. Each color is a single asset class, each color would be the equivalent of putting all your eggs in one basket.
You can see on top left that US large cap and you go across in the yellow US Bonds and the Grey is emerging market equities. What you need to take away from this chart is that you are as likely to see US Bonds in the top like you do in 2000 and 2001
as you are to see them as the worst asset at the bottom of the year in 2003 and 2004. Putting all your eggs in one basket is a risky strategy but achieving proper diversi cation is a complex mathematical formula.
ROBO ADVISORS AND GROWING YOUR WEALTH
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