Diversification’s role in investment portfolios
The concept of diversification is a cornerstone in the world of investment. It’s a risk management strategy that involves mixing a variety of investments within a portfolio. The idea is that a portfolio of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio. But are you diversified? This question came to the forefront recently when bonds, gold, and almost all stocks, except large core and growth, experienced a surge. Let’s delve into the importance of diversification in investment portfolios, usin...