Some alternative strategies for managing risk in investment include diversification, hedging, using stop losses, and investing in inverse ETFs. Diversification involves spreading your investments across various assets to reduce the impact of a poor performance by any one asset. Hedging is a strategy that involves taking an offsetting position in a related security. Stop losses are orders set at a specific price that, if reached, result in the automatic selling of the asset. Inverse ETFs are designed to perform as the inverse of a particular index or other benchmark, providing a profit if the benchmark declines in value.
How should investors manage the inevitabilities of risk? What are the most powerful wealth-building...
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