... compensate for those losses. Proper diversification can occur based on various parameters. Firstly, by types of assets: for example, part of the funds could be allocated to stocks, another part to bonds, and another to real estate or gold. Secondly, diversification can be achieved through different issuers and sectors: assets can be distributed among stocks of various companies from different industries, bonds from diverse issuers, and multiple real estate objects, etc. As a result, a balanced portfolio is created. If one particular investment significantly depreciates ...

... Goldman Sachs identifies several approaches that can help investors preserve and grow capital in a challenging macroeconomic environment. 1. Portfolio Diversification This is a key strategy for minimizing risks. Investors are advised to focus on global diversification, incorporating assets from various regions and sectors. Particular attention should be given to emerging markets that demonstrate resilient growth. 2. Sustainable Development (ESG) ESG-compliant companies show better returns due to the adoption of green technologies ...

... restrictions, non-qualified investors may shift their focus to Russian stocks and bonds. This could lead to a rise in demand for domestic financial instruments, especially for securities of large companies and government bonds, which are considered reliable assets. Limitation on Portfolio Diversification Opportunities Foreign assets provide opportunities for broad diversification, helping to reduce risks associated with any specific market. With restricted access to foreign securities, retail investors will become more dependent on the ...

... positives. One silver lining is that the probability of incurring catastrophic losses is significantly low. From the previous example, it is evident that both Bitcoin and Ethereum prices declined. However, the losses incurred by an investor holding both assets would not be as severe as those faced by an individual investing solely in Bitcoin. Thus, diversification can be considered a risk management strategy for a crypto portfolio. Additionally, diversification acts as a profit-maximizing strategy under certain market conditions. This was evident during the DeFi boom of 2020. During that period,...

... mistakes of novice investors Lack of a plan: Often, beginners invest money chaotically, without a clear goal and strategy. The desire to get rich quick: Investing is a long-term process, and attempts to make money quickly can lead to capital loss. Ignoring diversification: Putting all your money into one asset or sector can cause you to suffer large losses when the market declines. Overreacting to news: Often investors sell assets whenever the market declines, which leads to losses. Tips and wishes for beginner investors Investing is a long journey that ...