Your plan has poor diversification because it ignores most of the economy (large cap stocks). (money.stackexchange.com)
Unless an investor had $ 50,000 — $ 100,000 in fixed income to allocate individual bonds would likely be too cost restrictive and offer poor diversification for the risks outlined earlier. (triageinvestingblog.com)
This general scenario of poor diversification is repeated more often than you think because it's been told to millions of people, as I illustrate clearly in another article I wrote, called Why Dave Ramsey Is Wrong On Mutual Funds. (thebalance.com)