Importance of Diversifying Investments

Diversifying investments is crucial to mitigating risks associated with the market. Active managers face challenges due to market composition, with technology and communications services driving gains. Despite broad predictions of stock increases, sectors such as tech and communication may outperform. The economy's resilience has surpassed expectations, escalating GDP growth, and forward earnings. However, expected choppiness in stock performance indicates the need for cautious optimism and potential corrective periods.