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Keep a diverse range of assets in your portfolio from "summary" of Secrets You Never Knew About Stock Market Investing and Trading by Swaminathan Annamalai
Maintaining a diverse range of assets in your portfolio is crucial for managing risk and maximizing returns in the stock market. By spreading your investments across different asset classes, industries, and geographic regions, you can reduce the impact of market fluctuations on your overall portfolio. This strategy is known as diversification, and it is a fundamental principle of investing that helps to protect your wealth over the long term. When you invest in a variety of assets, you are less vulnerable to the performance of any single investment. For example, if one sector of the economy experiences a downturn, your losses in that sector may be offset by gains in other areas of your portfolio. By diversifying, you can potentially earn a more stable return on your investments and avoid the risk of losing all your money in a s...
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