The key is to re-balance your portfolio yearly to maintain your desired investment diversification. Netfolio Insights features the opinions of many different experts. Inc. The articles are not a substitute for individualized professional advice when investing, managing or spending your money. Any stocks recommended in this article may have been owned by the expert at the time of the interview. Inc. Fast Advice 1.
Most people assume that safer is better.
Others are just after a fast, high return. Both are risky approaches. When you combine different stocks and different types of assets, it is the risk of that combined group of investments that is critical. Stocks in similar industries tend to move in similar directions based on changes in the economy and other factors. You want to own companies in the US market as well as some in overseas markets.