To Diversify or Not to Diversify

I WILL RECAP WHAT WE’VE LEARNED SO FAR. FROM CHAPTER 1, WE saw that the standard financial industry advice on how to make a return with the least risk falls short on a number of levels. Rather, we must include the personal factors, like age and circumstance, in the investment strategy. Diversification as a way to reduce risk is addressed by using cash, in addition to stocks and bonds. There are times when cash provides the most return with the least risk. There is simply no assurance that market trends up or down will remain in place. From Chapters 2 and 3, we saw in fact that stocks and bonds move in secular trends ...

Get Grow Your Investments with the Best Mutual Funds and ETFs: Making Long-Term Investment Decisions with the Best Funds Today now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.