So to get the least risky portfolio, an investor must mix in the most risky asset class. It's Gibson's job to explain that to clients and make certain that they buy into it in advance. Those who do are rewarded. But as investors, few of us operate with such disciplined logic. Instead, most of us get psychologically involved.
Many people have deep-seated fears about money.
Some get pleasure from making the right decisions about it. Many feel pain from bad choices. All of these things can work against the success of a diversified portfolio in the short term. He began using it for clients that year. Some investors cannot live with that kind of loss.