Diversify. But remember diversification is an approach to help manage investment risk. It does not eliminate the risk of loss if security prices decline.
Market movements, business decisions, economic events, politics, interest rates—many factors can influence the performance of your investments. Instead of worrying about events that are out of your hands, focus on what’s in your control.
Market risk-- or the risk of your portfolio losing value due to factors such changing market conditions-- isn’t the only type of risk to be concerned about. Personal risk, such as longer lifespans and rising healthcare costs, means that Americans needs to consider a variety of factors as they prepare for retirement. Understanding risk as it relates to your time horizon and investing goals is critical to a financial strategy