As lingering inflation looms on the horizon, now is the time to focus on managing risk by reviewing what many investors appear to be ignoring: diversification.
4. Compare your sector allocation to the S&P 500:
Without such a strategy, investors often end up chasing a favorite sector or a couple of high-flying stocks which increases risk. This usually results in an imbalance among sectors compared to a well-diversified index such as the S&P 500. By trying to minimize the tax bill every time a stock is sold, an investor could eventually be left with a concentrated portfolio of just a handful of stocks. If the market keeps moving higher, holding on to your top performers will likely be a great strategy.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Op-Ed: Why we should defund prisons, not policeIt makes little sense to keep funding incarceration at the same level when it is needed less and less.
Consulte Mais informação »
Op-Ed: We are our data, our data are usThe 'dataome' has all the hallmarks of a living system, including a deeply symbiotic relationship to its originators, Homo sapiens.
Consulte Mais informação »
Op-Ed: How the U.S. can deter ransomware attacksTo discourage cyber hackers, the U.S. must make it harder for them to profit — and signal that the country is ready and willing to retaliate.
Consulte Mais informação »
Op-Ed: Send in the sea otters to help save California's North CoastKelp forests north of the Golden Gate are in dire shape. The return of the sea otter could help bring them back to life.
Consulte Mais informação »
Op-Ed: Hands off our taco carts! Small legal changes would protect vendorsA state law in 2018 aimed to let these super-small businesses operate under different rules from big food trucks. L.A. officials keep levying fines.
Consulte Mais informação »
Op-Ed: Hands off our taco carts! Small legal changes would protect vendorsA state law in 2018 aimed to let these super-small businesses operate under different rules from big food trucks. L.A. officials keep levying fines.
Consulte Mais informação »