During market downturns, investors who hold concentrated positions in individual stocks may experience significant losses and face a 'recoil effect' when markets recover, whereas diversified portfolios like SCHD can provide more stable returns through consistent dividend payments (such as 3.5%) and reduced volatility, making diversification a key strategy for protecting downside risk during market crashes.
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Smart Moves During A Market Crash #stocks #investing追加:
God forbid one of those happily, it's >> And what happens when those in the actually their number one position last [music] year is not even the portfolio this year because it got crushed. Right.
And that's >> they're still paying out 3 and 1/2%.
>> [music] >> And oh, by the way, if you own that position by yourself or independently, you're just accumulating [music] shares, accumulating shares, waiting for it to come back. And when it does, you just have this [music] huge recoil effect that you won't get if you're in SCHD.
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