Diversification protects against unexpected downturns. By holding a wide range of assets, investors gain resilience.
Owning only digital players like Meta and Amazon may work well in short cycles, but when technology falls, losses are heavy.
Adding healthcare (Pfizer, mayville engineering company price Johnson & Johnson) protects against downturns. Global exposure with Toyota, Samsung, Alibaba adds new opportunities.
ETFs such as SPDR S&P 500 ETF make diversification easy.
Ultimately, diversification lets investors sleep better. A portfolio with both growth and value stocks reduces volatility.
