Diversifying your investments is a key component of any successful investment strategy, and it's especially important for those who are heavily concentrated in natural resources. This can be a problem in Canada. Some people are even concentrated in natural resources without knowing it by having, say, a few key holdings in multiple sectors that are…
Asset allocation is important because it helps investors to manage risk. By diversifying their portfolio across different asset classes, investors can reduce the overall volatility of their investments.
For example, someone who only invests in stocks may experience large swings in their portfolio value when the stock market is volatile. However, if they also invest…