Reasons for specific industry performance fluctuations

Augusta

VIP Contributor
if you decide to invest only in a specific industry, the truth is that you are most likely to experience performance fluctuations. You can experience a great financial success or have financial challenges. This is why there's always the need for diversification. You don't just depend on a specific industry as nothing is certain.

Factors that causes this are some reasons below ;

The changing industry regulations. This could mar or make a positive impact to increase performance

Another is consumer behaviors or responsiveness. There will be fluctuations as customer increase patronage or there's a decrease..

The best way to deal with this volatility is by adopting diverse asset classes to invest in various industries. What do you think?
 
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