Writing: What Is Diversification?
Victoria Anne Wise
Stocks can have their value wiped out overnight if a company declares bankruptcy, is caught up in a scandal, or something happens to the industry as a whole. Take airline stocks, for example; when the pandemic first hit, airline stocks plunged. EasyJet lost 60% of its value in a month. Even now, in July 2021, with travel opportunities opening up again, it is still down 45%.
Meanwhile, Coca-Cola took a 36% hit in the same month but was only down by 8% at the end of 2020. This highlights the importance of investing in different types of stocks: EasyJet and Coca-Cola are cyclical and defensive, respectively.
Putting complex ideas into simple terms? That's easy!
🟥 With ten years of experience in financial services, explaining complex cash concepts is easy for me. My main knowledge is in investments and pensions, although I have no problems researching other products and understanding them.
🟧 I'm passionate about increasing financial literacy. My family was in deep debt during my childhood, so I grew up in poverty. I want to prevent that from happening to others.
🟨 Readers shouldn't be more confused after they read your content. That's why I search for what real people ask (or ask them myself!) to answer those questions.
🟩 I can write to your brief and keywords, or I can propose content ideas.
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Posted Oct 9, 2022
With ten years' experience in financial services, writing about finance is easy for me! I created this jargon-free, informative article about diversification.
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