Skip to Content
US Videos

Diversification Deep Dive

New research suggests that diversifying a portfolio is becoming more challenging. Here's what to focus on.

Susan Dziubinski: Hi, I'm Susan Dziubinski for Morningstar. New research suggests that effectively diversifying your investment portfolio may be becoming more challenging. Joining me today to discuss some of the findings from Morningstar's 2022 Diversification Landscape Report are the paper's three authors: Amy Arnott, who is a portfolio strategist with Morningstar; Christine Benz, who is Morningstar's director of Personal Finance and Retirement Planning; and Emory Zink, an associate director with Morningstar's Manager Research team. Thank you all for being here today.

This portfolio diversification research that you all have done examines the correlations of various asset classes against U.S. stocks. So, let's begin our conversation with you, Emory, and talk a little bit about what correlations are and how they're used in portfolio construction.