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That's one way to create wealth - invest in diamonds and hope they increase in value. It is certainly tempting to jump on the band wagon when it is on the run. Just make sure you get off before it goes over a cliff because what goes up usually goes down at some point. The old addage is it's easy to buy the challenge is when to sell.

It seems that investors are making investment decisions based on what investments have performed well in the recent past, and this in turn is resulting in concentrated portfolios. This is essentially the same as driving while looking in the rear view mirror and you're approaching a fork in the road.

Wealth preservation requires diversification. The idea of diversification has taken a hit as a result of the last couple of bear markets, as it seems everything went down together. While diversification may break down in the short-run, in the long-run it can increase returns while reducing risk. Just don't forget to re-balance from time-to-time. The main point is that the winners won't always be the winners, and the losers won't always be the losers.