This 1 Stock Market Chart Will Make You a Smarter Investor
Most investors know diversification is an essential piece of planning their portfolio. If you diversify across asset classes properly, you can maximize your returns for your risk tolerance.
Many investors stick with basic portfolio allocations like 60% stocks, 40% bonds because someone told them that’s a good balance. But if you want to understand diversification and why a 60/40 stock-to-bond ratio might make sense, be sure to check out the chart below.
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