The Benefits of Diversification

When an investor is thinking of becoming a client, the first thing we do is conduct a free portfolio review. Often the portfolio contains either not enough stocks, or too many. This means that the first tip I can give someone is to ensure you have some proper diversification. The stock market can be rather volatile, so one way to protect yourself from adverse movements to your share portfolio is to diversify. Diversification is a strategy which involves acquiring shares from different sectors to reduce the volatility of the portfolio. The term gets thrown around a lot so what does it really mean? (VIEW LINK)