Not exact matches
Common pitfalls include indiscriminately chasing spread, failing to keep up on central bank monetary policies, using too
much leverage, and lack of
broader - level portfolio
diversification
Fortunately, you can get pretty
much all the
diversification you need by investing in a few
broad - based stock and bond index funds.
But
broad diversification once again proved its mettle in 2011, as a multi-asset-class portfolio did
much better:
It may be surprising that the
much broader diversification of the equal - weight strategy does not ensure materially better risk characteristics.
Standard «Mixes» that are
broad groupings of Conservative, Moderate, and Aggressive
diversification,
much like Acorns
However, for investors willing to do the work, investing in individual stocks can lead to
much higher returns than
broad diversification into index funds.