WhiteHouse
Captain Junkie
“Do not put all your financial eggs in one basket’’
The most evident motivation to spread your investment around is that it decreases instability and diminishes the effect of any one investment or resource class not performing well.
Putting the entirety of your cash into one Investment, in the event that that organization lost everything you would lose the entirety of your cash. In any case, putting resources into an expansive scope of Investment implies that some can fall in value without majorly affecting your general performance.
So Yes, it is a very sound and effective strategy.
The most evident motivation to spread your investment around is that it decreases instability and diminishes the effect of any one investment or resource class not performing well.
Putting the entirety of your cash into one Investment, in the event that that organization lost everything you would lose the entirety of your cash. In any case, putting resources into an expansive scope of Investment implies that some can fall in value without majorly affecting your general performance.
So Yes, it is a very sound and effective strategy.