Is diversification a means of stability?

[deucher]

Everyone who makes stock market investments is aware of the significance of devirtification; in addition, those who profit from their investments are aware that doing so allows them to safeguard their capital from losses. I think it's accurate to state that de-diversification equals stability because in that scenario, individuals could not be concerned about losing some assets because it will appear to them to be a steady profit. Do you concur with this assertion?

 

[Kane]

Diversification means you have a safety net. If you have invested your $1000 into 10 assets and even when 5 assets drop value you can still make money with the remaining 5 assets. It is quite impossible for all of the 10 assets to go down.