Diversify your investment portfolio from "summary" of Investing for Dummies by Eric Kevin Tyson
Diversifying your investment portfolio means spreading your investments across a variety of different asset classes, such as stocks, bonds, real estate, and commodities. By doing so, you can reduce the risk of losing money if one particular investment underperforms. For example, if you only invest in technology stocks and the tech sector experiences a downturn, your entire portfolio could suffer. However, if you also have investments in other sectors, such as healthcare or consumer goods, you may be better protected. Additionally, diversification can help you take advantage of different market conditions. For instance, when stocks are performing poorly, bonds may be doing well, and vice versa. By having a mix of investments, you can potentially offset losses in one area with gains in another. This can help smooth out the o...
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