Finc 321 paper ***profesor anthony**
My investments have performed well compared to the S&P 500 index over the past year. Over this period, my portfolio has gained an average of 8% versus 5% for the S&P 500 index. The outperformance of my portfolio can be attributed a number of factors, including diversification and actively managing them.
Diversification is important to me. I’ve spread my investment across different asset classes, including real estate, stocks, bonds and commodities. This allows me to lower risk, while still aiming for higher returns. In addition, by regularly rebalancing and actively monitoring market conditions I am better able to capitalize on new opportunities while minimizing losses during recessions.
Ultimately these strategies have allowed me to outperform the S&P 500 over this period while also reducing overall volatility throughout my investments. In the future, I will continue to use these strategies to optimize long-term return while minimising risk exposure.