As a consequence of their slim focus, sector investments are generally more unstable than investments that diversify across many sectors and companies.
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These investors can have to just accept decrease very long-expression returns, as a lot of bonds—Specially higher-high-quality issues—usually Never supply returns as higher as stocks above the long run. Having said that, note that some fixed income investments, like high-generate bonds and specified Intercontinental bonds, can present Significantly greater yields, albeit with far more risk.
2nd, Trader sentiment could lead to dividend-spending equities to tumble out of favor and reduce in price.
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