I certainly agree that one should start investing in things that they are more familiar with. For example, with stock investing, if you invest in companies that you have an inherent interest in, you’re more likely to keep tabs on the performance and have fun doing it. You may even have some key insight into the industry if you have experience working in it.

On the flip side, if investors only stick to what they know, they can miss out. Take investments into emerging markets or precious _meta_ls as an example. These have performed pretty well in the recent past and I’m fairly certain that most investors were not putting these asset classes on the top of their wish lists a decade ago. (Cough, cough. . .technology) I guess this is where asset allocation comes in. Although the situation of every investor is unique, I believe that it’s prudent to have a broadly diversified portfolio that includes asset classes you may not be familiar with. This doesn’t mean you put 99% of your portfolio into pork belly futures or ceramic unicorn figurines on the first signs that they’re hot. Many investors have a piece of their portfolio that they “play” with. Why not play and learn at the same time?