ECONOMIC ANCHOR VS DIVERSE MARKET

[Jason Malabute]

Good news! I have cut down my potential markets that I am looking at into 3 markets (manageable ).

People are always saying to invest in a market with an economic anchor that supports the economy. Economic anchor is any powerful economic unit/industry that drives/major effects on the local economy. Anything can be an economic anchor. E.g. military bases, government offices, steel mills, manufacturing, knowledge-based workers (Silicon Valley). It's all dependent on economic clout and power.

At the same time, people say to invest in a market with a diverse economy. They say do not invest in a market who's economy depends on one industry.

How do you reconcile these two ideas? How can a market or neighborhood have an economic anchor and diverse economy at the same time?

Thank you,

Jason