FYI: Nobel prize-winning economist Milton Friedman helped popularize the saying, “There’s no such thing as a free lunch,” which means that in politics and economics, nothing is ever “free” – someone, somewhere must always pay the price, even if that price is paid in non-monetary terms. Applied to investing, the notion that there’s “no such thing as a free lunch” means that you generally have to trade risk for reward; accepting risk as the price of the potential investment gain – nothing “free” about it. But while Friedman’s statement of economic law may generally apply, there is such a thing as a “free lunch” in investing: diversification.
Regards,
Ted
http://dailyalts.com/salient-explains-free-lunch-diversifying-high-volatility-assets/
