Paramount priority of diversification is — crash proof. See also post on crash.

• USD
• CNY
• gold can be safer than USD
• energy stocks
• alternative energy stocks
• minerals
• consumer
• financials
• healthcare
• REIT
• bonds – Asian
• bonds – gov SG, US. Would appreciate in a flight to quality

— 2022 diversification xp .. my eq portfolio (along with SP500) experienced a major decline, raising the question of diversification. Watching some OCBC TV ad, I wondered how useful diversification actually is in pff.

• How about bccy? (I own none) Most of them declined more than stocks… Ineffective diversification.
• How about bonds? My bond mufu remain underwater since late 2021 .. Ineffective diversification.
• How about my HY/PE from Jill? In default… ineffective diversification.
• I think many asset classes are highly correlated… fake diversification.
• Other asset classes can have a super long trough (like 30Y) after a crash, such as gold and some properties.
• Some private investment schemes are shady and unregulated such as HY/PE and some bccy. So diversification using them can become fraudulent.

In conclusion, nowadays I think diversification is oversold to the general public.

A superficial diversification would involve some high-beta stocks (high correlation with SP500), some bonds, some bccy, some gold, some HY/PE, but I doubt they would provide positive return (end-to-end) in a depressed market. Such a return is what I need for liquidity.