One common misstep some investors make is investing the gross majority of their money in large U.S. stocks. While this may sound like a good move, it may be risky, especially when the market is unstable. Your goal should be a diversified portfolio that aligns with your time horizon and goals.
Another misstep that other financial professionals still suggest is putting money into exclusively individual stocks or specific sectors, like technology or energy. While this might sound good, it may lead to greater risk and doesn’t guarantee better returns. It’s important to remember that betting on specific companies can be unpredictable.
Lastly, investors who put most of their money in fixed-income investments, like bonds or cash, might miss out on growth opportunities compared to a more balanced approach.
So what should you do?
Investing for the long term is not a quick fix.
You should consider working with an independent financial advisor that helps you properly diversify your investments, understands risk, and makes choices based on long-term goals rather than short-term market news.
Still have questions?
Contact us today to discuss!
