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A real Wolf-of-Wall-Street pop in, only on the up-and-up.
Someone whose knowledge is as dazzling as the cars and wardrobe they can afford.
But heres the reality: Not everyexpert investoris a figure out of Hollywood.
Smart investors know the value of diversification.
But diversification isnt just for the ultra-wealthy these techniques are accessible to anyone.
Heres how to get started.
These high-earning, savvy investors know that different asset classes perform differently and help balance overall risk.
To get started, youll want to include at least two or more asset classes in your portfolio.
In the stock market, for example, they invest across multiple sectors.
Theyre also eager to diversify within their funds.
They regularly review their fund holdings to avoid overconcentration in a single investment category.
They Diversify by Geography
Wealthy investors know that locking themselves into a single countrysmarket increases risk.
A portfolio that includes foreign stocks and bonds can offer a buffer against potential domestic downturns.
But at the end of the day, we live in a global economy.
Smart investors take advantage of global opportunities, ensuring their portfolios benefit from diverse markets.
These non-traditional assets can help diversify portfolios and offer additional growth opportunities, and theyre popular among wealthier investors.
Rich investors also look to commodities, purchasing them either directly or through commodity funds.
A commodity is an investment in a physical good like gold, natural gas or even livestock.
Alternative assets can provide a hedge againstinflation and market volatility.
They Rebalance Their Portfolios Regularly
Above all, wealthy investors know thatmanaging a portfolioisnt a set-it-and-forget-it strategy.
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