What does the investment trend for Gale indicate about diversification?

The investment trend for Gale suggests that she would have lost money with only one type of investment, reinforcing the importance of diversification in an investment strategy. By spreading her investments across different asset types, she reduces the risk of severe losses that could occur if she were to concentrate her funds in a single investment category. Diversification allows an investor to balance out potential losses from one investment with gains from another, ultimately providing a more stable and potentially profitable overall return. If Gale had relied solely on one type of investment, the volatility and risks associated with that asset could have led to significant financial downturns, highlighting how diversification can act as a risk management tool in investment practices.