Chat GPT said my portfolio has to much overlap?
For some context, this is a shared portfolio between myself and a business partner. Our business is online retail, and we put any extra cash we don’t need to grow the business into this account as along with our Coinbase.
I put our portfolio statements every month through CHAT GPT, and have it do a deep dive into the portfolio based on our goals. Long story short, when I ran it for the month of April, its recommendation was that overlap could dramatically affect the portfolio’s long term gains. Especially inside the ETF overlap that the portfolio holds.
My question, does overlap really affect long term gains? I understand if conviction is high you should put more money into that play. My thought is, as long as I maintain the portfolio, having overlap shouldn’t matter unless it’s too much overlap or heavy weighted in one industry (left unattended) Such as the semiconductor stocks and AI stocks?
(Portfolio is sorted from most heavyweight market value rate to lowest)