Why does the phrase “seven plus one” always make money?

The phrase "seven plus one" has become a popular saying among those in the financial industry because it references the seven major asset classes (stocks, bonds, cash, real estate, commodities, derivatives, and alternative investments) and the eighth asset class, which is often referred to as “one”. This eighth asset class is typically referred to as the “eighth asset class” because it is the asset class that provides diversification and a hedge against the other seven asset classes.

The “eighth asset class” can be anything from gold and silver, to private equity and venture capital, to cryptocurrencies and other digital assets. Having this eighth asset class in a portfolio can provide a layer of diversification that can help protect against market volatility and provide a hedge against losses in the other asset classes.

By including the eighth asset class in a portfolio, investors can also benefit from the potential upside of the asset class. While the other seven asset classes may provide steady returns, the eighth asset class may provide higher returns as it is not correlated to the other asset classes.

In summary, the phrase “seven plus one” is a popular saying in the financial industry because it references the seven major asset classes and the eighth asset class, which provides diversification and a hedge against the other seven asset classes. By including this eighth asset class in a portfolio, investors can benefit from the potential upside of the asset class and the potential protection against losses in the other asset classes.