Diversification
Means not putting all your eggs in one basket. Essentially, you should invest in different sectors, countries, styles, and asset classes. If you invest everything in one stock or one sector (putting all your eggs in one basket), and that stock or sector crashes, you could lose everything. Diversification helps mitigate this risk by having a variety of investments in your portfolio at all times. #finance #teaching #learn #moneytips #investingtips
Government Intervention in the Economy
Follow us @thefinancedream or more tips on personal finance, self-improvement, and healthy lifestyle! The ups and downs of the business cycle, with periods of economic growth followed by recessions, can cause instability. Governments play a crucial role in trying to moderate these fluctuations through fiscal policy, monetary policy, and regulatory policy.
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