Diversification is an important strategy for investors and is when you spread your money across different asset classes and also investment types.
The goal of diversification is to spread risk and improve the consistency of your investment portfolio.
The financial crisis and subsequent monetary easing, has affected the way certain assets have performed and also the make-up of a well balanced portfolio. Below, we look at how investors are diversifying in today’s market.
The internet has created a global marketplace over the past forty years. A consequence has been a high level of fraud resulting in an increasing trust gap. Intermediaries help to add a level of verification but there still remains a leap of faith that the intermediary is trustworthy and competent. With the number of smart devices predicted to outnumber humans seven fold by 2020, new technology is required to fill the growing trust gap. Up step blockchain, tipped to radically change record keeping for shares and derivatives, property, governmental agencies and filing accounts. The resultant ledger is an immutable record trusted by all counter parties that speeds up and reduces the cost of transactions. Blockchains could replace all intermediaries and what’s more, every company in the world could be at risk of competitors that embrace and incorporate this game changing technology. Below we look at how blockchain works, its strengths and weaknesses and what future applications could be.
Blockchain technologies will initially target industries where poor service is delivered at a high cost.
One thing for sure there is far more to blockchain than Bitcoin.