If you don’t know whether you are right … what is the option?
So many investors keep asking the so-called experts what investment avenues are good for them. In many cases, the discussion revolves around the returns or guarantee. However, seldom the discussion is about both returns and risks together.
The problem with such an approach is that the upside is assumed to be a certainty, even when it is not. This leads to a portfolio either too loaded in favour of risky investments or completely avoiding these.
When you don’t know whether you are right, the best defence you have is to diversify. In the world of investing, this is the only “proverbial free lunch”.
If you don’t know whether you are right, diversify. When in doubt, diversify.
#RidingTheRollerCoaster – 100