Though growth stocks typically garner the spotlight, value strategies can still play a vital role in any portfolio. Diversifying and diversifying can increase long-term returns significantly. Both styles offer their own set of advantages and disadvantages; which style best fits you depends on your risk tolerance, investment goals, and time horizon. But how can you …

Many investors understand that, as interest rates increase, borrowing becomes more costly and can cause individuals to seek safer investments that still provide decent returns. Lower interest rates encourage consumer spending and business stock investment, leading to greater company profits and eventually higher stock prices. 1. Fixed-Income Investments Fixed income investments like bonds and preferred …

Stocks offer great potential for growth yet carry greater risk than other investments. Diversifying can help lower overall portfolio risks. Diversifying your stock portfolio means diversifying by market capitalization (large-, mid-, and small-cap stocks), sector, and geographic region—not to mention alternative asset classes like real estate and precious metals. 1. Introductory paragraph As is commonly …