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What diversification actually protects you against
There are really two kinds of risk in investing. One is market-wide risk, sometimes called systematic risk, the kind that comes from things like recessions, a BSP interest rate hike, or a global crisis, which drags down almost everything at once because it changes the expected cash flows or the discount rate applied to nearly every company and bond in the economy at the same time. No amount of spreading your money out removes this risk, because it touches the whole market by definition, not any single holding within it.