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Why do most investors hold diversified portfolios?

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Investing in the stock market is something that we all should take a look at and starting investing when we can. I have a stock market channel YouTube channel called the dividend stocks king which you can check out here: https://www.youtube.com/channel/UCKIXApIrXdvyajZvKV4VSHg on this channel I talk about the stock market and how and why I buy the stocks that I have. On this channel I always talk about passive income and have more than one source of income.

We can’t relay on a job to pay all of our bills so show people how dividend income will be a 2 stream of income and having diversified the money that you make. Please note that I am not giving you finance advice or money advice so please do your own research buying any stocks or investing.

Investors invest and hold diversified portfolios because that don’t want to put all their eggs in one basket. They don’t want to have tons of shares in one stock or one sector in the stock market. Some investors know that investing needs to be diversified just in case one of your stocks fail or fall, you will have other stocks to back you up some that is the main reason why investors buy and hold diversified portfolios. Owning an ETF like QYLD is another way to have a diversified portfolios. IF you own a lot of ETF then you have a lot of stocks and have diversified portfolio much will help your portfolio over all. Why is having an diversified portfolios in the stock market?

Why do we need to have an diversified portfolios?

The main reason why you should have an diversified portfolios is cause it’s much safer than not having one. For example, having one job is risky in my opinion cause you can lose your job, your job can relocate, they can downsize, there a host of things that can happen to your job and people pay all of their bills, buy all their food from having one job. That job is risky and that’s why we need to build more income streams to pay out bills, This is way investors have an diversified portfolios to b safe. All I can say is we need to have more than one income streams to make money and we can’t relay on having one job. We need 6 or 7 income streams coming in passively to make money and have more time.

With dividends, this is just one way one where we can build some passive income for us and not relay on a job. We need to have more time, we need to take control of our time. With the stock market we do need to have diversified portfolios and we need to have our money coming in diversified as well.

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