Investors: Don't Sleep on Portfolio Diversification
With stocks in a bear market, bonds offering little more than "less negative" returns, and cryptocurrency facing a serious reckoning, the first half of 2022 should remind investors that a diversified portfolio is going to be necessary in the years ahead. Overexposure to any particular stock or stock sector can lead to crushing portfolio losses, which can have the effect of derailing your investing momentum or worse -- putting your retirement in jeopardy.
Let's take a moment to revisit why diversification remains vitally important to your investing success.
To "diversify your portfolio" is another way of saying that you adequately spread your money across several different investments. While it's great to make money investing, not losing money should also be a central consideration. Diversification serves to limit risk.
Source Fool.com
