#DiversifyYourAssets

Diversifying your assets means spreading your investments across different types of assets or markets to reduce risk. The idea is that if one area performs poorly, others may perform better, balancing out potential losses. Here’s a simple breakdown of how to diversify:

1. Across Asset Classes

• Stocks: High growth potential but more volatile.

• Bonds: More stable, often pay interest.

• Real Estate: Physical property or REITs.

• Commodities: Gold, oil, etc., often hedge against inflation.

• Cash/Crypto: For liquidity or speculative growth.

2. Within Asset Classes

• Stocks: Invest in different sectors (tech, healthcare, energy) and regions (US, emerging markets, Europe).

• Bonds: Mix of corporate, government, short-term, and long-term bonds.

3. By Geography

• Domestic and international investments reduce the risk tied to a single country’s economy.

4. Alternative Assets

• Private equity, art, collectibles, or cryptocurrency—risky but can offer high returns or hedge against market downturns.

Example Diversified Portfolio (Balanced Risk):

• 40% stocks (US and international)

• 30% bonds

• 10% real estate

• 10% commodities (like gold)

• 10% cash or crypto