Diversification

Diversification is a key strategy in investing that involves spreading your investment portfolio across various asset classes, sectors, and geographic regions. The primary goal of diversification is to reduce the overall risk of your portfolio and potentially enhance returns over the long term.

In traditional investing, diversification can be achieved by investing in different stocks from various industries or regions, or by choosing bonds with different characteristics. However, alternative investing offers a broader range of diversification opportunities, opening up new possibilities for investors.

With alternative investing, you can explore various assets and strategies that are outside the traditional stock and bond markets. This may include additional sources of income and diversification, as they often have low correlations with traditional assets, meaning their performance may not be directly tied to the stock market.

By diversifying with alternative investments, investors can potentially enhance their overall portfolio performance reducing overall risk and protection against market volatility.