The soundest investment strategy that almost all brokers preach to their clients is to diversify. By keeping all of your investments in one sector, you run the risk of losing all of your investment in one crash. When oil prices fell in 1982, everyone scrambled to sell their stock because they were losing large amount of money by the day. Everyone makes mistakes, but when that one mistake costs you your entire portfolio, you’re cooked. Minimize risk and maximize your potential profit by spreading your investments around to different sectors.
You want to pour money into favorable markets when they appear to maximize your profits, of course. Who didn’t want to invest in the stock market in the 1990s when the dot-com boom was lighting up the business world? It’s an investor’s job to cash in on that unprecedented success when they could. But the stock market crashed when the dot-com bubble inevitably burst, in 2000, causing investors to lose billions of dollars. The key is to keep your profitable holdings long enough to cash out, then sell them before the crash. Of course, this is what all investors want. If you have a diverse portfolio, however, you won’t have to guess about the status of one market at a time, you’ll have your investments spread out over several markets so you won’t suffer huge losses.
Preston Fontenot takes care of his clients’ money by diversifying their portfolios whenever possible and maximizing their profits and minimizing their risks when they work with him. A small business owner and consultant, Fontenot continues to be sought-after for his business ownership expertise and advice.
You want to pour money into favorable markets when they appear to maximize your profits, of course. Who didn’t want to invest in the stock market in the 1990s when the dot-com boom was lighting up the business world? It’s an investor’s job to cash in on that unprecedented success when they could. But the stock market crashed when the dot-com bubble inevitably burst, in 2000, causing investors to lose billions of dollars. The key is to keep your profitable holdings long enough to cash out, then sell them before the crash. Of course, this is what all investors want. If you have a diverse portfolio, however, you won’t have to guess about the status of one market at a time, you’ll have your investments spread out over several markets so you won’t suffer huge losses.
Preston Fontenot takes care of his clients’ money by diversifying their portfolios whenever possible and maximizing their profits and minimizing their risks when they work with him. A small business owner and consultant, Fontenot continues to be sought-after for his business ownership expertise and advice.