Diversification is limited by the fundamental diversity of surviving things. When an ecosystem goes through an evolutionary bottleneck, temporarily the maximum diversity will plummet as there's a big extinction event (in biology, historically to the tune of 90%)
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If for example, before Covid, you held 95% S&P and 5% AMZN, and 5% is your "play" level, that ratio is now seriously out of whack, and you have to consider dumping some AMZN to buy S&P *or* redefine "play" for yourself (= "risk tolerance"). Is post-Covid future Amazonian?
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15y ago I was 100% passive index funds. Only in last 7y or so have I allocated "play" money to big tech stocks. It's done unreasonably well so I have to either reassess or rebalance. Is Burton Malkiel still right? Or is passive investing going through extinction bottleneck? 🤔
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I think that's like 60% true. The other 40% is whatever the hell the answer to climate is.
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No definitely not space. Something like energy/renewables. But it's hard to figure out. I bought a bunch of lithium stocks a few years ago and they've done really badly. My thinking is higher up the new energy stack... cell/battery/powerpacks...
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Tesla is not space, that’s SpaceX
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