I can’t advise on other assets. I can only speak to commercial real estate securitizations, which is what the article is referring to.
In commercial real estate, they mix lots of different types of properties up into portfolios and they try to balance it out so if an office building fails, it won’t bankrupt investors.
These types of portfolios are safe because they invoke less risk overall. It’s the same reason why your 401k portfolio has a bunch of different companies and not just Apple or Tesla stock.
It won’t gain value as fast as a single stock, but it is less likely to lose value overall and is a safer risk.
I can’t advise on other assets. I can only speak to commercial real estate securitizations, which is what the article is referring to.
In commercial real estate, they mix lots of different types of properties up into portfolios and they try to balance it out so if an office building fails, it won’t bankrupt investors.
These types of portfolios are safe because they invoke less risk overall. It’s the same reason why your 401k portfolio has a bunch of different companies and not just Apple or Tesla stock.
It won’t gain value as fast as a single stock, but it is less likely to lose value overall and is a safer risk.