Here is the final blog drawn from a BlackRock piece in Shareholder magazine, headlined Command Your Financial Future, which features three “time tested pieces of investment advice.”
Rule No. 3
“Double down on diversification.”
“The wisdom behind the phrase ‘don’t put all your eggs in one basket’ is as true today as ever—perhaps even more so, since the investing world is decidedly more complex. A more complicated world requires a broader range of investments to ensure you are tapping a full array of opportunities, while simultaneously spreading out your risk. This means investing outside U.S. borders and beyond traditional assets (stocks and bonds) and incorporating active, index and multi-asset strategies.
“Keep in mind that diversification is not defined by the number of positions held, but the types. You want to hold a mix of uncorrelated assets with the capacity to respond differently to market events so that you are building a portfolio with the wherewithal to weather a variety of scenarios.”