Matt Stutes, CFP, Cornerstone Wealth Management

This article brought to you courtesy of Matt Stutes, CFP, of Cornerstone Wealth Management, Sandy Post Insider Financial Planning Expert. Sponsored content.

Diversification is an investment principle designed to manage risk. Although, it is not a guarantee against a loss. The key is identifying investments that may perform differently in various market conditions. A diversified portfolio should be diversified between asset classes, (ex: stocks, bonds and cash alternatives) and within those asset classes.