5 Assets You Should Own Now

A diversified portfolio consists of various investments like stocks, fixed income, and commodities to maximize returns and mitigate risks. Through diversification, assets react differently to economic events, providing the highest return for the lowest risk. Including a mix of assets that don't correlate can lower overall risk and ensure some assets benefit regardless of economic shifts. Six asset classes for diversification include U.S. stocks, fixed income, international investments, real estate, commodities, and alternative investments. Gold is viewed as a hedge against market crashes and inflation. Asset bubbles should be monitored to avoid overexposure, and regular rebalancing is essential. Mutual funds provide diversification, tracking multiple securities but should be part of a diversified portfolio tailored to individual goals and the business cycle. Personalized asset allocation, guided by a financial planner, is crucial.