Diversification among various types of investments (e.g.,stocks,bonds,money market securities) provides more protection from economic uncertainty than a diversified portfolio based on holdings within only one of these investment groups.

Diversification

An investment strategy aimed at reducing risk by allocating investments among various financial instruments, industries, and other categories.

Economic Uncertainty

Situations where the future economic conditions or financial market trends cannot be predicted with certainty.

Investment Groups

Entities comprised of investors who pool their money together to invest in various financial instruments.