Diversify
Diversification reduces uncertainty and therefore risk. Instead of trying to pick winners from thousands of stocks, funds and managers, it allows you to gain access to sectors of the market that are appropriate to you and your risk profile.
"Dissimilar price movement diversification" enhances return. By building a portfolio with asset classes that don't move together, you can significantly reduce its overall volatility. This way, the prospects for a greater compound rate of return over time are improved, without the distractions of the noise of the day.
Global diversification via international stocks reduces risk and increases the expected return of your portfolio even further. You can lower the volatility of your portfolio by combining asset classes with low correlation, while still enjoying the superior returns of international equity markets. Combining domestic and foreign stocks is a powerfully advantageous investment strategy, allowing you to participate in the growth of the whole global economy and diversify to reduce risk, without sacrificing the growth potential of equity investments.