Tips To Insulate Your Portfolio from Shocks
Diversify your Portfolio
One of the best defenses against the financial crisis is a diversified portfolio. Invest in mutual funds. The benefit you get here is that by investing in funds you are automatically diversified among dozens or hundreds of stocks. What's more, funds give you a little professional guidance in this uncertain market. You can consider dividing your money depending on the need and goals. In the case of a market downturn, a well-diversified portfolio will outperform a intense one. Investors create deeper and more broadly diversified portfolios by owning a large number of investments in more than one asset class, thus reducing risk.
