Chris Larsen argues that traditional diversification by stock type fails when markets crash because correlations spike. Real diversification means owning different real-estate assets across locations and operators, like an apartment in Houston and a self-storage facility in Asheville.
Growth and value or large cap, mid cap, small cap. That's their idea of, of diversification. But you know, in the market crash, there's a correlation of 1. It all goes down. It all goes. Yeah, but if you're in a, but if, you know, if you're in an apartment in Houston or you're in a self storage facility in Asheville, North Carolina, we actually just sold a facility not far from you down there, but. Cool. Yeah. You know, yeah, but you know, you're, you are then diversified, diversified markets, diversified operators, diversified asset classes. That's diversification.
