<prompt> Human: I thought I have a very diversified portfolio. I have several ETFs: A stock market index MSCI World MSCI Emerging Markets A real estate ETF Government bonds GoldUnfortunately it seems that whenever something happens, all of these go either up or down. How can that be? Where does all the money go if everything goes down, and where does it come from when everything goes up?  <response>: The money doesnt necessarily GO anywhere. If you go out and buy a bunch of lemonade, and are selling cups of it for 1, you have an expected value of the remaining lemonade you have. If, overnight, people across the world decide they are terrified of lemonade because it causes infertility, then your remaining lemonade is going to be worth less. The value that you had in lemonade yesterday didnt really go to anyone, its just worth less. 