Build a diversified portfolio for stability from "summary" of All About Index Funds by Richard A. Ferri
To achieve stability in your investment portfolio, it is essential to diversify. Diversification involves spreading your investments across various asset classes, industries, and regions to reduce the overall risk of your portfolio. By doing so, you are not putting all your eggs in one basket, which can help cushion your portfolio from the ups and downs of individual investments. When you build a diversified portfolio, you are essentially creating a mix of investments that have different levels of risk and return potential. This mix can include a combination of stocks, bonds, real estate, and other asset classes. By including different types of investments in your portfolio, you are able to balance out the overall risk...
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