New to Investing? 5 Surefire Stocks to Start a Diversified Portfolio in 2022
The start of a new year brings with it some New Year's resolutions. One of your goals may be to invest in the stock market for the first time. Or perhaps you have started investing only recently and are interested in learning about stocks that can create a diversified portfolio.
One of the benefits of having a diversified portfolio of stocks is that it can spread the risk of an adverse event more broadly. For instance, if you only own stock in one electric vehicle company and it gets banned from selling its cars in the U.S., that could be devastating to your portfolio. However, if you own a broad portfolio of stocks that includes energy companies and other car companies, your portfolio as a whole may not be negatively affected at all. That's because the positive effect on others can offset the adverse impact on one stock.
Now that you are familiar with the benefits of diversification, here are five stocks that can start a diversified portfolio.
Source Fool.com
