Ever ridden in a car with worn-out shock absorbers? Every bump is jarring, every corner stomach-churning, and every red light an excuse to assume the brace position. Owning an undiversified portfolio can trigger similar reactions.
A recent CNBC post highlighted how poorly active managers of stock funds are doing this year. They pointed out that active fund managers had their worst first half since the data from Bank of America started tracking their performance in 2003.