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Nadia Vanderhall
@nvknows
We are in the middle of #bearmarket and #fomc (gave insight on this here: https://bit.ly/3NTZFeR) talk — one thing that I did want to talk about was why portfolio diversification is so important. So WTFinance is that?! The key focus is diversification. What that is having your portfolio balanced by spreading (picking/purchasing) assets — like stocks, bonds and now crypto, so that your exposure to any one type of asset is limited. To bring it more narrow — it can be within sector. Like Energy, EV, Consumer, Tech, etc. If you find yourself bullish (meaning — loving it, all in) on it, it’s fine. Just make sure to add some other sectors…maybe via ETFs, Index Funds, etc. No 2 portfolios are alike. But the diversification mix that you have when you start investing will not be the same as you grow through your investing journey. You’re growing and knowing as your risk tolerance and research develops your strategy. I’m not going to go into the ratio of 60/40, because the traditional theories of investing are becoming a bit board. But what I’m going to do is have you look within your portfolio — on Public to make sure that you’re balancing your portfolio with holdings. For instance — with research, a couple years ago I noticed that one of my portfolios was a bit unbalance due to me having a bit more Consumer Retail stocks. This is called rebalancing. But certain brokerages do this this automatically. Also, this will help during market shift — like the Bear Market we’re in. Oh, this can be for individual stocks. Add some ETFs to the mix as you learn how they work. They will help buffer your hits when things happen. Use the Bull [Market] to build for the Bear [Market]. Bear Markets tend to happen every 8 years. It’s completely normal to feel antsy about the stock/crypto markets, just investing in general. Need insight? https://bit.ly/3MSvfsf Take this time to learn and leverage. Ask questions. Listen to YouTube. Look at your holdings and watchlist. But keep your mindset focused. #longterm #focused #investorsinsight
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