Shout out to DL for drawing my attention to this post. So Drew Brees got conned into thinking diamonds would diversify his portfolio. Of course he lost roughly half his investment. I would wager everyone that buys a diamond ring immediately loses more than half. I know, I know, you can take your ring to a jeweler and get it appraised for $20,000. However, I bet if you told the jeweler “That’s great, why don’t you take advantage of me, pay me $10,000 for this ring, and then go double your money?” the jeweler would decline.
Back to diversification, again, people often get into trouble looking for the shortcuts to building and preserving wealth. Ask Bernie Madoff’s clients.
Stick to the fundamentals folks. Students out there: Pay attention to your finance professors.