Diversification is really a pretty simple concept: “don’t put all eggs in a basket”. Individual investments such as shares or a fund may fluctuate erratically. If you have made the right choice, things can go really well but if you are unlucky and wrong you can lose everything. Therefore, there is a consensus among experts in the financial industry that as an investor, one should reduce their diversifiable risk by spreading their investments as much as possible. For the stock market, this means that you buy many shares, for a total portfolio that you use many different types of investment.
“Don’t put all egg baskets in a Volvo duet” if you want to say the word a little longer.
These types of investments can be interest-bearing funds, hedge funds, commodities or now: K2K Loans. The most important thing is that they correlate as little as possible with each other, and this makes K2K loans attractive as it is not directly linked to the stock exchange. This is called “hedging”; to add a product that doesn’t go down when the other does, and is, as its name suggests, a cornerstone of hedge funds.
Right now the stock market is looking very worried, and most people are starting to push sales or wait
But what are the alternatives? the bank does not give any interest anymore. Our best tip (ok, we are a little biased) is to go in and create a portfolio with us and / or other K2K companies, start carefully and see how the monthly payments come into the account, and increase depending on your own risk preference.
How the stock market goes and what requirements you have for liquidity.
It is clear that the stock market appears risky at present, and that most small savers and investors can improve their portfolio by dividing their investments more than they currently do. However, the same goes for Athos, do not put all money into a loan, spread it out as many as possible.