You can use in a simple form many of the tricks of hedge fund managers, though it may cost you overall.
Browsing: diversification
Bad news for the nervous. Assets have become more closely correlated, making diversification harder.
Vertical diversification is when your investment portfolio is spread across different types of assets. Cash, government bonds, corporate bonds, property and shares can each be expected to behave slightly differently and so produce different returns, as circumstances change. For instance, government bonds may soar when stock markets crash, because frightened…
When deciding whether to buy a particular asset, we should also pay attention to the assets we already own. A collection of assets is called a portfolio. By buying and holding assets with different characteristics, we can try to create a portfolio that offers the greatest return for the risk…
