A well-balanced, diversified portfolio is a joy for all seasons, giving something no matter what various markets or asset classes are doing. An overly concentrated portfolio is the opposite, a ticking time bomb volatile to fluctuations in macroeconomics and other influencers of the share price.
Last month we talked about interest rate risk – the risk of your investment devaluing and you losing money due to changes in interest rate. In a sense, this is about an investment’s possibility of flailing due to macroeconomic conditions. This month, we’re going to look at credit risk.
It’s a cold world out there this June. As the thermometer temperature drops, the price of fuel and cost of living keep rising… but it’s not all doom and gloom.
Education around the basics of wealth creation and preservation is like a good, solid diet packed with healthy food staples, it can help you enjoy healthy finances for years and create a strong foundation for building your future.