Systematic Risk on Saturday Night
Saturday night is Motown music night at my favorite dance hall. I love rocking a beehive hairdo and false lashes!
Sometimes I like to dress à la Megan Draper in a baby doll dress and kitten heels. And yes, my man dresses like Don. Dreamy!
But, I have those nights when I want strut my stuff solo and do tequila shots in my highest heels.
It’s just a fact of 20-something life, there is always a risk of aching feet when we go out dancing. If the DJ is rocking it that night, we all are going to hobble home.
I’m going to get technical for a moment; this is what a stock maven would call systematic risk.
Depending on my choice of shoes, I can add to my late night misery. I’ve learned the hard way stilettos, compared to kitten heels, are exponentially more likely give me the dreaded blisters.
Again, technical moment, this is what a stock maven would call unsystematic risk. I can diversify my way to make this zero.
No, I don’t wear a kitten heels on the right and platform on the left. But, that’s the right idea. Instead, I mix up my shoe selection from Saturday to Saturday.
(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)