... your investment horizon, and your risk tolerance. For example, if you require a steady income over the next few years to cover tuition payments, it would be illogical to invest in a fund that does not provide dividends and whose profitability is highly volatile—even if it promises substantial returns a decade from now. Likewise, if you are approximately 35 years old today and you are investing funds intended for your retirement in 30 years, there is no need to be excessively worried about short-term ...

... companies in the S&P 500: 8.4% Total return from 2005 to 2020: 293% The industrial sector has yielded profits of around 300% since 2005. In fact, it is more balanced than often assumed. These assets are attractive due to good dividends and tend to be less volatile compared to other sectors, such as energy, commodities, and finance. Energy Weight of companies in the S&P 500: 2.3% Total return from 2005 to 2020: 59% The energy sector performed best in 2005, 2007, and 2016; however, 2020 marked the third ...

... is also essential to consider the impact of new legislative initiatives, such as the income tax on deposits, which may alter depositors' preferences and encourage the search for alternative investment tools. Sectors less susceptible to sanctions and volatility, such as IT, healthcare, and the domestic consumer market, may represent opportunities for portfolio diversification. Additionally, investors are advised to focus on export-oriented companies that can adapt to the new economic conditions. This ...

... cryptocurrency as an asset class. There is also a noticeable increase among institutional investors and national governments in the cryptocurrency market. Despite the heightened interest, the primary concern among institutional investors remains price volatility. Unlike traditional assets currently held in investors' portfolios, cryptocurrencies are more challenging to predict due to their fluctuating nature. With new tools and platforms aimed at institutional investors, it is evident that the industry ...

... high beta stocks. The right way to protect a portfolio from bear markets or even black swan events is to diversify risk across asset classes. Investments such as hedge funds, private equity, commodities, and real estate are less sensitive to market volatility.