> ...if you have some unique insight on some specific market, use it on the market! One thing to be cautious of here is that people often overinvest when they

> ...if you have some unique insight on some specific market, use it on the market! One thing to be cautious of here is that people often overinvest when they have some sort of advantage, and become way too over-leveraged in one single area. I remember a calculation from a college finance class. Imagine you have an otherwise "optimal" portfolio with 1% of its assets in a particular large stock, but you know that the real average returns of that stock are going to be ~2x what the market is expecting. So you recompute the efficient portfolio with this new information and find the new optimal weight of the stock and it's only something like 2-3% despite having a very strong information advantage over the market. But most people would think this sounds crazy. "I've got a crazy inside stock tip that it's worth double what everyone else thinks? Shouldn't I put at least 10% of my money in there?" No. Diversity is a hell of a value-add in a portfolio.