Category: Asset Allocation

Diversify Your Portfolio to Manage Risk

Thursday, December 31st, 2009

There's an old adage that says we shouldn't keep all of our eggs in one basket. This can be interpreted in a number of ways. For investors, it is synonymous with diversifying their portfolios. Beginning investors often put all of their money into one type of investment. They might purchase stock in a company that is doing well, or a low-risk government bond. These investments are usually quite safe, so the investor is unlikely to lose any money. But they also offer a low rate of return, so investors won't get rich from them either. Those who are looking to get rich...

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