THE DIVERSIFICATION DELUSION: WHEN DIFFERENT ISN’T ACTUALLY DIFFERENT
Why your “diversified” portfolio might be one big bet in disguise
“Don’t put all your eggs in one basket.”
Brilliant advice. Utterly useless execution by most traders.
Here’s the inconvenient truth: your supposedly diversified portfolio is probably about as diversified as a wine cellar containing only different vintages of the same Bordeaux.
- Different currency pairs (all react the same to interest rates)
- Various commodities (all crash together during panics)
- Multiple crypto positions (Bitcoin + Ethereum = 85% correlation)
During March 2020, everything fell together. Even gold dropped with stocks.
REAL DIVERSIFICATION ISN’T ABOUT DIFFERENT ASSETS. IT’S ABOUT DIFFERENT THINKING
Pelican’s 50+ broker network gives you:
- Geographic diversity (European, Asian, American approaches)
- Strategy diversity (trend following vs. mean reversion)
- Timeframe diversity (scalping to swing trading)
- Direction diversity (long and short capabilities)
Between 74-89% of retail CFD traders lose money. But accessing genuinely different strategies beats holding correlated assets that move together.
Institutions use cross-strategy diversification. Pelican brings this to individual traders.
