Thursday, 30 June 2011

Six methods to reduce your investment risk (Part 5 of 8)

[3] Diversify your assets amongst different sectors and countries: You have no control over what problems will affect specific industries or countries in the future. Those negative events are, to a great extent, unpredictable.

Follow the example of professional investors and spread your savings amongst different types of assets.

If you diversify internationally by placing a good part of your savings in stable countries around the world, your financial future will be less affected by problems in any particular territory.

To be continued in the next post.


[Image by Martin Pettitt under Creative Commons Attribution License. See the license terms under]