Diversification doesn’t just protect against losses; it also positions you to seize growth opportunities. Different sectors and industries can experience varying levels of growth based on market trends, technological advancements, and economic conditions.
By diversifying, you increase the likelihood of having investments that align with these growth trajectories.
For instance, if one industry is experiencing a boom, while another is facing a slump, your diversified portfolio would allow you to capture gains from the booming industry while minimizing losses from the struggling one.