On diversifying your income and assets
It is important to diversify your assets because it is impossible to know which assets will go up in value in the future. This is because of the market efficiency hypothesis - will such quick access to information, all assets should be reasonably priced. There is also the argument by Taleb in 'Fooled by Randomness' which states that markets are determined largely by randomness, and it is impossible for the investor to predict which way assets will move. Because of this uncertainty, we need to diversify because nobody knows which way the assets will move, nor can anybody predict crashes or bull markets. Always be skeptical of any asset that promises to exceed more than 6-7% per year as the growth will be unlikely to be sustainable, e.g. some cryptos which boast excess of 1000% annual returns. Think about it, Warren Buffet, the world's greatest investor, does not make more than 10-20% returns per year, so anything promising wild returns is a scam. Diversify your income for t