Category : General

Diversify to Crash-Proof Your Portfolio

What is diversification? For our purposes, diversification means lowering the overall risk in our investment portfolios by owning a wide variety of assets. Here’s the rationale for this: significantly different assets will likely respond differently to the same event (i.e., they aren’t highly correlated). This means that some assets will change in value differently compared to others (or even change in the opposite direction) in response to a market event.  Owning some assets of each kind mitigates some of the […]

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