risk
What is Diversification?
Diversification means spreading money across many investments, such as different companies, industries, bond types or countries, so that a loss in one holding has a smaller effect on the whole. It can reduce the ups and downs of a portfolio, but it does not prevent losses when most markets fall at the same time.
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In WallStreetDigest editions
· The Week in Review
Week in review: Chip stock losses, P&G gain, and lower bond yields
Owning a single chipmaker directly carries its news in full, with nothing to offset it.