What to invest in?
The giants of financial industries allow fantastic budgets to make sure their ads appear when you ask Google this question. Try seeing how many ads you’ll have to scroll through to get to the non-selling content.
The competition for your wallet gets weaker when you ask the search engine: “How to diversify?” That’s a pity, as investing in different asset classes is much more important for a balanced and profitable portfolio than grabbing the essence of new trends like SPACs or some newly listed biotech stock.
The advantages of diversification:
1. Minimizing the risks
If one of the market segments does not yield the desired return or is questionable, the other will help your equity curve cheer up. Money keeps moving around, making some investments more profitable than others at a given time. Diversification makes sure it doesn’t slip through your fingers wherever it flows to.
2. New experience and knowledge
All assets have different logic. When you try new directions, you expand your financial background and learn to open to new opportunities.
3. Emotional peace of mind
Investing is a complicated business, it is true, even if professionals accompany you. Choosing to allocate capital safely will ensure that you focus on long-term goals, which automatically alleviates stressing on minor economic events and threats.
Risk Warning: The information in this article is presented for general information and shall be treated as a marketing communication only. This analysis is not a recommendation to sell or buy any instrument. Investing in financial instruments involves a high degree of risk and may not be suitable for all investors. Trading in financial instruments can result in both an increase and a decrease in capital. Please refer to our Risk Disclosure available on our web site for further information.