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Invest in trending stocks but stay diversified

Investors are flocking to AI investing, which is the current big thing. But, Warren Buffet, one of the greatest investors of all time, is pouring money into global energy stocks and commodities in Japan. So who is right, and where do you invest your money? To answer a question with a question. Are you suitably diversified?

While investing in current trending and well-performing markets is beneficial, your portfolio must stay diversified to spread the risk of losses when unpredictable markets and economies dive.

Big tech company shares are performing well, and the markets are favourable. It makes sense to invest in AI and AI-related industries because that is where the money currently is.

Warren Buffet thinks it is energy. Why? His investments have averaged 20% per annum. So he must know something. On 20 percent, you could potentially double your money in three and a half years. Global energy prices are currently priced lower than almost any sector. Taking advantage of lower stock prices means the potential for growth in the future.

“We’ve got a 16-year high in interest rates. At some point, those are going down. I think it’s within 12-18 months, and as it does so, activity will pick up. China and Asia will pick up, and energy stock is going to be the ones for me that are going to make the biggest profits. The world hasn’t got enough energy, so guess what? There is a percentage of my money that is going straight into energy.” Nigel Green, CEO deVere

To build long-term wealth, it is vital to have a globally diversified portfolio to spread the risk of losses. Chat with your financial advisor to help structure your portfolio with suitably diversified quality funds while also leaving a percentage for trend investing.

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