While exchange-traded funds are a good way to diversify a portfolio, there's still no foolproof way to beat high inflation when it comes to investment moves.
"They provide investors access to underlying investments, like stocks or bonds, and generally provide more diversification than a single stock or bond," said Ashley Tran, a Fidelity assistant branch manager in Tampa, Florida."As ETFs track an index, they are an easy way for investors to build a well-balanced strategic asset allocation," she explained.It’s important to note there’s noregarding your investment decisions, but diversification can play a role.
"The whole purpose of diversification is to reduce as much risk as possible by allocating investments across various financial instruments, sectors, regions, and other categories," said Falko Hoernicke, senior portfolio manager at U.S. Bank Private Wealth Management, who is based in Santa Barbara, California. He explained that each of those categories reacts differently to changes in the macroeconomic environment.
"History has shown that trying to time the market is not a good strategy," said Hoernicke. "If investors only miss a few of the best days in the stock market, the long-term performance of their account can diminish significantly." In this photo provided by the New York Stock Exchange, trader Ryan Falvey works on the floor, Tuesday, May 3, 2022.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
20 bank stocks expected to benefit the most from rising interest rates as the Federal Reserve fights inflationThese U.S. banks are expected to show the greatest improvement in interest-rate spreads over the next four quarters:
Consulte Mais informação »
Time to sell? How to manage your investment property as interest rates riseRising interest rates can affect property owners with variable mortgage rates and fixed mortgage rates. Here are some strategies for
Consulte Mais informação »
British Pound (GBP) Weekly Forecast: Red-Hot Inflation Rekindles Stagflation FearsThe GBP did not enjoy its most productive week, losing ground against the Euro and US Dollar respectively. GBPUSD declined from a weekly high of 1.2150 to trade at 1.18300, a drop of 300 odd pips.
Consulte Mais informação »
Derrick Rose Should Be Good To Go To Start SeasonDerrick Rose Should Be Good To Go To Start Season - RealGM Wiretap
Consulte Mais informação »
How to Be More Present During Good TimesThe surprising link between self-compassion, mindfulness, and our ability to enjoy positive experiences to the fullest
Consulte Mais informação »
Why Waking Up in the Middle of the Night Is Actually Normal | Well+GoodSleep experts explain why waking up a few times in the middle of the night is normal and why you definitely shouldn't stress over it.
Consulte Mais informação »