For example, looking at this chart, see how the performance of stocks, bonds, and cash equivalent investments in a moderate risk portfolio varied over a 20-year time horizon.
Because investment types—like stocks, bonds, or cash equivalent investments—tend to perform differently over time, it's important to diversify your portfolio. For example, looking at this chart, see how the performance of stocks, bonds, and cash equivalent investments in a moderate risk portfolio varied over a 20-year time horizon.