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Hi everyone, I'm kinda new here. I've got some cash to burn, and looking to diversify. Any tips on which sectors or stocks are good for a noob to not get instantly rekt? Thanks a bunch!
Submitted 1 year ago by SmartyStonks
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Pack your portfolio with undervalued gems. Look for companies trading below their intrinsic value. Do your DD and consider mid-cap companies that have room to grow. Try looking into $IWM for some exposure to those mid-size companies that could have big upside
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First, check out the macro situation. Tech's been getting smacked, but if you believe in the sector long-term, might be some deals to be had. $QQQ for overall tech exposure. Energy's been strong with all the geopolitical craziness, $XLE for that. Then sprinkle in some international action with $VEU for global diversity. Remember, the goal of diversification is to reduce risk by spreading your investments across various industries/assets.
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If you’re new, consider starting with some dividend aristocrats – stable companies that have a history of paying consistent dividends. Companies like $JNJ, $PG, and $KO are often good starting points. They aren't gonna double overnight, but they also won't drop 50% when the wind changes direction.
Sector-wise, tech is always hot, but it can get hit hard in market pullbacks, so be careful there. Consider some consumer staples, healthcare, and maybe a splash of utilities for stability. You can look for ETFs like $XLP, $XLV, and $XLU to get spread across those sectors without buying individual stocks and risking individual company drama tanking you.
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