Diversification
| Diversification is a risk-management strategy that combines many investments into a single portfolio. By investing in a variety of asset classes, sectors, and industries, diversification can help protect your portfolio from the effects of a sudden market downturn. While no investment is completely immune from market volatility, diversification can help reduce the overall risk of your portfolio. By investing in a variety of asset classes, you can spread your risk across a number of different investments, which can help protect your portfolio from a sudden market downturn. Diversification is not a guarantee against loss, but it is a valuable tool that can help you manage the risk in your portfolio. When constructing a diversified portfolio, it is important to consider your investment goals, risk tolerance, and time horizon. Diversification can be a helpful tool for managing the risk in your portfolio, but it is not a guarantee against loss. When constructing a diversified portfolio, be sure to consider your investment goals, risk tolerance, and time horizon. |
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