important aspect of investing is diversification. This not only reduces the risk in the portfolio, but also allows it to perform in different market conditions. Asset allocation is a form of diversification that reduces the portfolios risk more then it compromise returns. When one invests in two or more asset classes that tend to go in divergent directions in different market conditions, the combination is likely to have a stabilizing effect on the portfolio. To became a successful investor one need to have an investment plan in place and the conviction to strict with it during periods of market turbulence .remember a sound investment plan must take in to consideration factor such as ounces currently financial situation ,investment objective and attitude towards risk.
Posted on: Sat, 22 Mar 2014 08:32:06 +0000
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