Diversification is the key
Diversification means adding several asset classes that are different in nature (such as global bonds, international stocks, and U.S. small stocks) to your portfolio with a suitable percentage of asset allocation to each class.
An efficient combination of assets can drastically reduce your overall portfolio risk and enhance your returns since asset classes have different correlations with one another.
It helps as well to offset your stock and bond investments by considering alternative investments, such as metals, commodities and real estate.
