One of the most common pieces of investment advice is “don’t put all your eggs in one basket.” That’s the essence of diversification — spreading your investments across different asset classes to reduce risk and smooth out returns. Why does diversification matter? Because markets are unpredictable. Stocks might soar one
When it comes to building wealth, one of the first decisions you’ll face is whether to follow an active or passive investment strategy. Each has its pros, risks, and philosophies — and the best choice depends on your goals and risk tolerance. Passive investing typically involves holding diversified portfolios, like
Most investors like to believe they make rational decisions — analyzing the market, following the data, weighing pros and cons. But in reality, our brains are wired to react emotionally, especially when money is on the line. Fear and greed are two powerful forces in investing. Fear can cause panic
