What In Tarnation? Even Ogre's Gotta Diversify His Swamp Investments!

Somebody Once Told Me Diversify!

Alright alright settle down you donkey brained investors! Shrek here reporting live from me swamp. Seems like even an ogre like me needs to pay attention to the flippin' market these days. Morningstar – and I thought that was just a breakfast cereal – says that this year if you ain't diversifying your portfolio you're gonna be singing 'Hallelujah' for all the wrong reasons. Apparently putting all yer eggs in one basket especially if that basket's just regular ol' stocks and bonds ain't cuttin' it no more.

Tariffs? More Like Terrible iffs!

Now I ain't no fancy finance fella but even I know that when things get rocky with these 'tariffs' and folks start worryin' 'bout inflation – which I reckon is just a fancy word for things getting pricier than dragon breath mints – you gotta watch your swamp dollars! The whole stock market's been doin' the 'Thriller' dance since April all thanks to President Trump's tariff policy. Makes me wanna yell 'Get out of my swamp!' to the whole darn economy.

The 60/40 Split? More Like 60/40 Split Personality!

This Morningstar lady Amy Arnott says that the ol' reliable 60% stocks and 40% bonds ain't the golden goose it used to be. Apparently this 'diversified portfolio' – which sounds like a salad bar for your investments – is doing better this year. She said "The 60/40 portfolio has been a very reliable way to improve risk adjusted returns over time but I will say that because of all the turmoil that has been going on so far in 2025 we know that trend has reversed to some extent where at least so far this year the more diversified version has fared better."

Ogres Love Layers Portfolios Should Too!

So what's in this magic ogre approved portfolio? Well it’s got 60% in risky stuff and 40% in the safer bits like the 60/40 but the 60% and 40% also have layers! We're talkin' international stocks real estate (maybe I should invest in a new swamp!) and even GOLD! Turns out gold's up like 26% this year. Who knew shiny rocks could be so profitable? Makes you wonder if I should pawn off Donkey for some bullion but no I wouldn't do that! Donkeys are priceless.

From Swamp to Stocks: A Long Term Investment

This ain't always been the case mind you. Last year the basic portfolio did better but Arnott lady says that these tariffs have thrown a wrench into things. Kinda like when Donkey tries to 'help' with swamp upkeep. She says "The major shifts in US tariff policy announced in April 2025 have also added massive levels of uncertainty to the investment landscape potentially upending many previously established performance patterns,".

Just Add Gold (And Maybe Some Onions)

So what's an ogre to do? Arnott suggests sticking to a diversified portfolio with the stocks outside of the US and also small cap stocks. You might want to add some commodities and a small portion of gold! "There can be a reasonable argument for diversifying into those asset classes but I would try to avoid making major shifts in your asset allocation in response to what's going on at any given moment," she said. Just remember like onions your portfolio should have layers! Now if you'll excuse me I'm gonna go see if I can trade some swamp gas for gold.