Pen resting on document labeled “Portfolio Diversification” and financial charts

Why You Shouldn’t Wait to Consider Diversifying Your Portfolio


Written by Angela Roberts

May 5, 2022

I’ve never been one for waiting. If I feel I’ve done my research well and found an opportunity that’s right for me, my family, and my finances, I like to take action. If you’re looking to increase your portfolio diversification, here are a few reasons to consider now your time to act.

There’s never a bad time to reexamine your portfolio.

Couple examining financial documents with laptop and calculatorWhether or not it’s the right time to diversify your portfolio is a matter of personal choice. It depends on your unique financial situation as well as your acceptable level of financial risk. But in my opinion, it’s never a bad time to reexamine your current portfolio and do some research into the current and possible future states of our economy. Staying informed is one of the best ways to ensure that when you do make a financial decision, that decision is backed by as much knowledge as possible. It’s the same reason that we at U.S. Money Reserve provide our clients with up-to-the-minute price charts, as well as a variety of market knowledge and insights, on our newly updated website.

It’s important to note that reexamining your portfolio is different from constantly monitoring your portfolio. If all you do is watch and fret over every shift in asset price, you’re likely to develop “myopic loss aversion,” which CNBC describes as a mindset in which you become more sensitive to losses than gains. As with many financial situations, educating yourself is key to avoiding unnecessary anxiety like this.

Diversification isn’t just about what’s happening now—it’s also about protecting your future.

Close-up of couple holding handsOn May 4, 2022, The Wall Street Journal reported that the U.S. economy shrank in the first quarter of 2022. Speaking virtually at the Journal’s CEO Council Summit in London held that same day, U.S. Treasury Secretary Janet Yellen noted that “the outlook is very uncertain,” citing “dangers at the global level” as well as “commodity prices” and “spillovers from [the] Russia and Ukraine [conflict].” Meanwhile, on April 29, 2022, the Associated Press reported, “An inflation gauge closely tracked by the Federal Reserve surged 6.6% in March [2022] compared with a year ago, the highest 12-month jump in four decades.”

Diversification is all about reducing your overall risk exposure. If you allocate your wealth to a single asset, any market factor that negatively affects that asset could have serious consequences for your portfolio. But if you allocate portions of your wealth to a variety of assets and asset classes, especially those that may respond differently (or not at all) to the same market factors, you may be able to reduce your portfolio’s overall level of risk.

This is another reason taking educated steps now to protect your portfolio may be so helpful. You’ll not only be responding to current market factors, but also ensuring that no matter what may come, your wealth can achieve a greater level of protection than if you had not diversified in advance. You may discover the peace of mind alone that can come from knowing you’ve taken educated steps to protect your wealth and future, as well as your loved ones’ futures, is invaluable.

There’s an entire world of diversification for you to explore.

At U.S. Money Reserve, we work hard to ensure that our clients have as many resources available to them as possible so that they can make educated decisions regarding the addition of physical precious metals to their portfolios. But diversification doesn’t have to end with just gold or even with multiple precious metals.

Diversification means exploring options in both paper-based and non-paper-based assets. From stocks and bonds to real estate, precious metals, and other alternative asset classes, diversification encompasses a wide world of options and strategies. As every financial situation is unique, so too should your portfolio contain a unique mix of assets.

With so many options and strategies to choose from, why wait? NOW can be the time for you to take action regarding your portfolio. Even if that action is merely researching your options, you’ll be much closer to building a portfolio that gives you true peace of mind.

To learn more about the benefits of physical gold ownership, CLICK HERE to request a FREE copy of our Gold Information Kit.


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