If you’re breaking into the world of investing in stocks, you might be wondering how you can keep your portfolio growing without risking too many uncertain investments. Thankfully, there are a lot of ways to make sure that you keep your investments in the black and keep them growing as your financial situation grows!
Let’s look at a few tips for keeping your portfolio healthy.
You typically don’t want to put all of your eggs in one basket. If you have stock in a tech company, it’s usually best to not buy a lot of stock in another tech company. After all, outside factors that might affect one will naturally affect the other. Generally speaking, you want to offset your investments with investments in wildly different fields.
So, if you have stock in a tech company, consider diversifying by buying stock in a commodity. Something that is created by good, old-fashioned methods is generally immune to things that shake the tech world, and vice-versa.
You also want to make sure you keep track of how you’re diversified. It’s possible that the companies you’ve invested in have changed their business model over the years. This could bring some of your investments closer together in terms of what they’re vulnerable to, so you might be well-served by keeping an eye on this and changing out your investments as they shift over time.
It’s wise to diversify into physical commodities if you hold mostly stocks. For instance, if you’ve got deep positions on companies like Amazon and Tesla, it might be prudent to invest some into gold or silver. Bullion is well-regarded for its consistency, holding its value well against inflation.
Many investors point to gold and silver investments as being hedges against the whims of central banking institutions. They often act as forms of alternative currency, so they’re a great backup plan for a portfolio that otherwise heavily relies on stocks and futures.
Make sure you keep your 401 (K) or other retirement account contributions up, too! These might not feel like “traditional” investments, but they’re still part of your financial portfolio. These investments are a big part of your financial future, so it’s important that you don’t neglect them.
While investing in stocks and futures is all well and good, the fundamentals of your long-term financial strategy are just as important. Keep those contributions steady, especially if you get a retirement account match from your employer!