What is Diversification?

Diversification refers to keeping a diverse investment portfolio of assets to protect against market turmoil. Different investments tend to perform differently depending on what's happening in the market, so owning a variety of diverse assets means that when some lose value, others may gain value. A well-diversified portfolio usually includes a mixture of stocks, fixed income (bonds), and commodities. A diversified portfolio may also include one or more crypto assets, which should also be diversified.