Asset diversification is one of the most cliché things in the world of investing. Even people who don’t know the first thing about investing have most likely heard of diversification. If you’ve ever watched any of the financial shows on MSN, FOX Business, or Bloomberg Television, you’ve probably heard some of the talking heads ramble on saying, “You’ve got to diversify your investment portfolio!” Well, if everyone’s talking about it, there’s probably a good reason. So what is diversification? Join me as we take a closer look at the sound reasons for diversifying our portfolios… in financially simple terms.