All things in moderation – that’s the way I was brought up, and something I believe in firmly, not just in moderation (the exception that proves the rule?). Extreme examples of the rule of moderation include cyanide, which can easily kill you, but in tiny amounts sustains life. On the other end, water is a basic requirement for life, but too much water causes death, via drowning or water intoxication. Whether it’s drinking, drugging, hard work, watching TV, shopping for bargains, sex -- or anything else – I can think of very few things that, in moderation, are inherently bad or harmful. By extension, there are precious few things that, in excess, are not harmful.
This segues into the concept of diversification in one’s investments, and Modern Portfolio Theory (MPT). MPT is in part based on diversification, or the opposite of putting all your eggs in one basket, and it counts ... Log in or subscribe to continue reading.
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