... Investment Strategies in Times of Economic Instability: Diversification and Risk Management In times of economic uncertainty, effective investment management becomes particularly crucial. Sharp market fluctuations necessitate a careful approach to portfolio construction and active risk management. In this article, we will explore strategies that can help investors preserve and grow their capital even in the most unstable times. Why Diversification is Essential Diversification is the allocation of investments across various assets and ...

... overly reliant on this strategy, as improper stop-loss settings can cause more harm than good. Overall, stop-loss orders are tools more suited for experienced investors who already have the ability to analyze price movements and wish to automate risk management. Portfolio Rebalancing Portfolio rebalancing is the periodic review and restoration of the original structure of your investments. Over time, some assets in a portfolio may appreciate while others lag behind, causing the allocation of investments to deviate ...

... Assets. Focusing solely on Russian assets increases dependence on the local market. Overexposing a Single Sector. Investing in assets within one sector raises risks during downturns in that sector. Over-Diversification. Having too many assets complicates portfolio management and can reduce returns. Ignoring Liquidity. A lack of liquid assets can lead to difficulties when quick asset sales are necessary. How to Effectively Manage a Diversified Portfolio As an entrepreneur involved in a pre-IPO project, I can confidently ...

... 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, the DeFi sector outperformed other segments of the crypto market. In contrast,...

... we will explore what this market entails, its scale, key trends, and future prospects (including in Russia and the CIS). What is Collective Investing? Collective investing is a model in which the funds of numerous investors are pooled into a single portfolio managed by a professional management firm. This approach allows even those with limited capital to access a diversified set of assets – stocks, bonds, and other securities – by participating in a large fund. Professional managers oversee the combined ...