Even if two investors are dispersing their money in the exact same shares at the exact same time, it does not necessarily mean that they will be equally impacted by market volatility. Diversification is one of the most important protective measures to implement during these times since it can actually help shield investors from any of these negative implications. Many experts claim that limiting the amount of big bets that you invest in can also help protect investors from the damaging effects of market volatility.
- In times of drastic market changes, it’s important to have a diversified portfolio and good mix of investments.
- Any type of retirement planning should take into account market volatility to ensure future financial stability.
- By steering clear of high-risk, high-reward investments, your portfolio will remain more stable over time.
“Going to cash or trying to time the market by buying low and selling high can actually magnify losses.”