Diversification in a Bull Market

In a bull market, we have very local relations between stocks and stocks are just moving based on their individual characteristics. And therefore, diversification is more important because if you put all your money in stocks from the same sector, that sector might be the only one that doesn't do well in that bull market. We see that constant rotation even this week. Look what's going on in semiconductors and some of the software names. They're pulling back this week. And then at the same time, we see energy and biotech starting to work up while they were the previous couple of weeks. So far, mostly favorable. I pay very special attention to how the market reacts to earnings,. This