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Diversifying your investments can mitigate risk from "summary" of 8 caminhos que levam à riqueza by Pablo Marçal
When it comes to investing, putting all your eggs in one basket is not a wise move. By spreading your investments across different asset classes, industries, and geographic regions, you can reduce the overall risk in your portfolio. This strategy, known as diversification, helps to protect your investments from the volatility of any single market or sector. Diversifying your investments can help to smooth out the ups and downs in the market, as different assets tend to perform differently under various economic conditions. For example, while stocks may perform well during periods of economic growth, bonds may provide stability during times of market downturns. By holding a mix of both stocks and bonds, you can potentially offset losses in one asset class with gains in another. Furthermore, diversification can...
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