You’re familiar with the saying “don’t put your eggs in one basket”, right? Well, that’s pretty much what diversifying your portfolio is all about! Only, by eggs we mean money and by basket we mean assets.
Yes – the market is mercurial, and changes faster than you breathe! Therefore, to be able to keep up with it, you must assume a strategy that reduces your risk-exposure, by allocating investments among various financial instruments, industries, or categories. So, if everything goes down the drain, you can keep your cool on! Having said that, here are the reasons why you should adopt a diversified investment strategy.