All In the Numbers by Dennis Friedman

March 10 market sell-off was a good example of two kinds of investing risks: overall market and stock-specific risks.

When you invest in a single stock, you are not only subject to overall market risk, but also risks that are unique to that company.

When you invest in a broad-based index fund, you can minimize both risks by diversifying.

March 10, 2025 Stock Market sell-off:

Dow Jones  -
Dow Jones Industrial Average       -2.08%

S&P 500
Standard & Poor’s 500.                  - 2.70%

NASDAQ
NASDAQ Composite                       - 4.00%

VTI
Vanguard Total Stock Market       - 2.72%

TSLA.
Tesla, Inc.                                         -15.43%

The post All In the Numbers by Dennis Friedman appeared first on HumbleDollar.