Why diverse portfolios can help you not 'take as hard of a hit'
The launch of China's new artificial intelligence (AI) model, DeepSeek, has triggered a sell-off in US tech stocks. Haywood Wealth Management president and cofounder Justin Haywood joins Wealth to discuss the importance of portfolio diversification in markets.
Haywood notes that diversification strategies should align with each investor's personal risk tolerance. He recommends considering bonds ( ^TYX , ^TNX , ^FVX ) and the equal-weight S&P 500 as potential options.
"You just want to remain diversified [and] have exposure to many different asset classes and sectors; that way, on a day like today, you're not going to take as hard of a hit," he explains.
When diversifying, Haywood acknowledges that all investment strategies carry "some level of risk."
He notes, "There has to be some risk in a portfolio. Otherwise, you're just going to be sitting in a checking account forever and not earning much."
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This post was written by Angel Smith