Diversification is one of the cornerstones of traditional investment advice. A common saying we often hear is “never put all your eggs in one basket” and when investing that line particularly holds true. Markets go up and down through economic change, business cycles, and a wide variety of other factors. Individual companies as well are impacted by these and more. One defense against risks in any investment strategy is a diverse portfolio backed by individual financial planning.
By now, there’s a good chance that the recent market downturn resulting from the COVID-19 pandemic has left you questioning your investment strategy. In fact, there’s a good chance that you lost a good part of your portfolio during the rapid sell-off in early-mid March. But now that the sudden onset of this downturn has passed, it’s time to thoughtfully reevaluate your investing plans in the wake of COVID-19.