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Holistic investing

What matters is your portfolio as a whole – a fact that has important implications which investors neglect to their cost
Holistic investing

Many of you hold economists in low esteem, and reasonably so if you judge them on their forecasting record. But they do have some useful advice to offer – and one piece in particular is underappreciated.

This is the idea that what matters is your portfolio as a whole, more than any part of it. Everything you are investing for – whether to finance lavish spending, achieve a secure retirement, leave money to your children or whatever – depends upon your overall wealth. So it’s this that matters.

Obvious as it seems, this has some implications that are often forgotten. Here are four.

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