Why Should a Person Diversify Their Investments
In this video, Thomas Brock explains that diversification across asset classes like stocks, bonds, cash, and alternatives helps reduce volatility and achieve steadier long-term portfolio performance.
Video Transcript
Diversification is the key to prudent investing. By investing in a mix of asset classes such as stocks, bonds, cash, and alternative investments, you're able to mitigate some of the volatility you would experience otherwise. When stocks zig, bonds tend to zag. When you blend all of that together in your portfolio, you get a steadier long term performance.
