Because many of those indexes may tend to rise and fall at the same time, which is why it's a good idea to throw
a lot more asset classes such as some commodities, bonds, property and cash, and other assets into the mix.
Not exact matches
A
lot of people are looking to get rich quick, but a
more reliable method is to build wealth at a moderately swift pace by increasing your income, saving aggressively, and investing smartly in dividend stocks, index funds, and other
asset classes.
Although readers of Hacked don't need a
lot of convincing to buy
more cryptocurrency, higher inflation could certainly make this
asset class more attractive.
If you put your $ 5,000 into a riskier
asset class such as stocks (ie a stock mutual fund) then in 6 months your investment might be worth
more than $ 5,000 or it could be worth less than $ 5,000 (possibly a
lot less).
«Stated differently, there are many academics who would say that buying individual stocks leads to people taking «uncompensated risks», meaning they could likely get a similar return with a
lot less volatility if they just diversified
more — both within and throughout
asset classes.»
If an
asset class drops a
lot and you buy
more, then it increases a
lot and you sell some, you're going to make a little extra money.
This is partially due to the fact that the company is putting a
lot of its investment money (36 %) into stocks, which, on average, are a
more profitable
asset class compared to bonds.
Preferred shares are a unique
asset class, and as mentioned above require a
lot more maintenance than a portfolio benchmarked to the S&P 500.
These
asset classes are currently subject to a
lot more oversight than Bitcoin.