Investment Diversification is a Double-edged Sword

An understanding of investment diversification can help you earn a high rate of return on your peer loans and minimize the amount of work you need to do in analysis.

Look through any peer lending site for five minutes and you’ll probably see the word, “diversification,” at least ten times. As an investment analyst, the idea of investment diversification has been a fundamental part of my consultations with clients and portfolio managers.

The bird’s eye view of diversification is this, putting all...