Volatility to me has always been an issue, like it is for every single investor. Smart investors learn how to live with it and it’s just the nature of investing. So much of investing has to do with the emotional component of the ups and downs. How do you handle it emotionally? The way I do it is pretty simple, pretty straightforward, and it's called diversification. So I might have…I could either use an ETF or I could use a bond fund to have some bonds in my portfolio, or there are individual bonds, a lot of people use them also. Alongside I’d have a chunk of growth stocks and a chunk of very large blue chips as we call them, but have a variety of things in your portfolio and it moderates the ups and the downs. So when a period where the market is up and robust you're probably not going to do quite as well as one of your neighbors but that’s the price of reducing your risk is diversification and I happen to believe in it quite strongly.
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The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. Each investor needs to review an investment strategy and their asset allocation for his or her own particular situation before making any investment decision.
All expressions of opinion are subject to change without notice in reaction to shifting market conditions.
Diversification strategies do not ensure a profit and do not protect against losses in declining markets.