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Why is it still a good idea to diversify your investments?

User Soronthar
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Answer:

Diversifying your investments is still a good idea because it helps to spread risk. By diversifying, you can ensure that your money is spread across different asset classes, sectors, and geographical regions, which can help reduce the risk of suffering a significant loss from any single investment. Diversification can also protect against market volatility, as well as inflation.

User Jara
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Answer: Diversification helps mitigate the risk to you about such scenarios by choosing different investments and types of investments. Diversification doesn't guarantee investment returns or eliminate the risk of loss including in a declining market.

Step-by-step explanation:

User Audree
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