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Not diversifying a portfolio sufficiently can mean putting your assets at greater risk of loss. At the same time, less diversification means more risk but also the possibility of a better return.
An investor that put all of their assets into Apple Inc. (APPL) five years ago would certainly be much better off than an investor that owned a broadly diversified portfolio over the same time frame. But over time, a less diversified approach can hurt an investor’s chance of achieving the long-term desired result they want for retirement.
An investor who wants to prudently wants to grow their assets over time should resist the temptation to put too much capital into one stock or investment.
What are Some Strategies for Diversifying a Portfolio?
How Can I Check if My Portfolio is Diversified?
Credit Spread is an indication of the default risk perceived in corporate bonds at the current time. The credit...
Contribution limits for the TSP are the same as regular 401(k)s. An employee can defer up to $18,000 a year in 2016
Real estate investments fall into a wide spectrum of subsets. You can invest in residential property, commercial, etc.
The Russell 1000 comprises over 90% of the total market capitalization of U.S. stocks, and is the go-to benchmark
A closed-end fund is a collective investment model where a company raises a fixed amount of capital through a share...
Risk can be defined as exposure to the possibility of loss of an asset. Risk might be used to denote the potential of loss
A calendar spread is a strategy also known as a horizontal/time spread, in which the investor uses two options contracts
Publication 17 is a very large and detailed guide to help individuals correctly file their federal income tax returns
Once you have acquired bitcoin, you will want to make sure that you store it in a secure fashion that suits your taste and needs
A Merkle Tree is a technique widely used to create the blocks in blockchains