Diversification and Portfolio Strategy

Diversification is an investment strategy that involves spreading your money across different assets, such as stocks, bonds, and real estate. The goal is to reduce risk; if one investment loses value, others may perform better, balancing the overall portfolio. A well-diversified portfolio can help protect against market volatility and potential losses. Essentially, instead of putting all your eggs in one basket, you create a mix of investments that can provide more stable returns over time, helping you achieve your financial goals while minimizing risks.