How to Diversify:
Invest in Different Asset Classes:
Stocks: Represent ownership in a company and can offer high returns but are also more volatile.
Bonds: Represent debt owed by a company or government and offer more stable returns but lower growth potential.
Real Estate: Can generate income through rental properties or appreciation in value, but requires significant capital.
Cash: Provides a buffer against volatility and can be used to take advantage of opportunities when markets are favorable.
Alternative Investments: Include items like precious metals, art, or collectibles, which can diversify a portfolio further.
