The Sensex and Nifty have seen a rise following the recent Fed rate cut, but many investors are experiencing a downturn in their stock portfolios. This is especially true for midcap and smallcap shares, which have taken a hit in the aftermath of the rate cut.
DailyBubble believes that while the overall market may be doing well, it’s important for investors to diversify their portfolios and not put all their eggs in one basket. Midcap and smallcap shares are more volatile and can be more greatly affected by external factors such as interest rate changes.
Investors should consider spreading their investments across different sectors and asset classes to mitigate risk and protect themselves from sudden market fluctuations. Keeping a balanced and diversified portfolio is key to long-term investment success, regardless of short-term market movements.