Week 34 Day 4: Narrow Framing: The Danger of Looking at Each Position Alone

Evaluating each investment in isolation (narrow framing) leads to worse decisions than evaluating your portfolio as a whole (broad framing). A position that looks terrible on its own may be an excelle...

Evaluating each investment in isolation (narrow framing) leads to worse decisions than evaluating your portfolio as a whole (broad framing). A position that looks terrible on its own may be an excellent diversifier that reduces your total portfolio risk.