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.

Since the beginning of the year, the good music played at “Stock-Mania” kept going, as the market reached higher levels quickly. Investors thrilled with their great performance in the previous year, thought that this year will also be filled with rosy dreams, rainbows, and golden pots; since prices continued to climb the “Stair Way To Heaven”. Suddenly, things changed dramatically by the start of February and brought back nightmares, of not a distant past.

While in the previous month I have discussed the rise of European Union as a political and economic power which was later tested in 2010 debt crisis, the good news favored by bullish euro currency investors continue to emerge as the ECB meeting minutes in December 2017 showed that the ECB is ready to shift guidance, sending a signal to begin tapering it’s QE program, and the commencement of normalizing monetary policy in 2018. This sounds as good music for the ears of investors for now.