Diversification Over Time

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Diversification Over Time

Long-term investing allows for diversification not just across assets but also over time. 관련주.COM

By investing consistently over a long period, investors can benefit from dollar-cost averaging, which can reduce the impact of market timing on investment performance.

Dollar-Cost Averaging

Dollar-cost averaging involves regularly investing a fixed amount of money, regardless of the market’s condition. This strategy can lower the average cost per share over time, helping to smooth out the effects of market volatility.

Strategic Asset Allocation

Long-term investors can also take advantage of strategic asset allocation, periodically rebalancing their portfolio to align with their investment goals and risk tolerance. This proactive approach ensures that the portfolio remains diversified and aligned with the investor’s long-term objectives.