Your WEALTH MATTERS BLOG

Since the debt crisis of 2008, many investors have sought to build market resiliency into their portfolios through diversification in funds outside of the traditional markets. While achieving total immunity to market risk is unlikely, a strategic, outside-the-box investment approach that incorporates holdings from intensely different market sectors is a great start. But if it’s such a good idea, why isn’t everyone doing it?

If you are not a professional in the investment industry, and sometimes even if you are, it can be difficult to evaluate the ins and outs of any particular investment. Deciphering the fine print, especially when it comes to evaluating risk, can be especially difficult.

Diversification is one of the best risk-mitigating strategies people can employ in their portfolios. Mitigating risk is the sensible choice and including investments that are not correlated to each other is one way to accomplish this.