Frequently Asked Questions

• How many stocks should I own?

  There’s no one-size-fits-all number of stocks you should own, but you should diversify your portfolio to include stocks from a range of sectors to reduce risk. ETFs and mutual funds that track broad-based indexes like the S&P 500 or Russell 3000 are an excellent way to diversify your stock por🧜tfolio.

  Learn More: What Is the Ideal Number of𒊎 Stocks to Have in a Portfolio?
• Do I have to pay taxes if I rebalance my 401(k)?

  No, you won’t have to pay taxes on the sale of any appreciated assets within your 401(k) during rebalancing. Your c꧟apital gains in a 401(k) aren’t taxed until the money is withdra🦋wn from the account. Selling assets to rebalance a regular brokerage account, however, will incur taxes.

  Learn More: How to Rebalance 401(k) Assets
• What is the most volatile sector?

  Historically, the energy sector has been very volatile compared to the broader market. S&P Global research found that over the course of the 2010s, the e🧔nergy sector had a standard deviation of 20.3%, nearly double that of the least volatile sector, consumer staples (10.7%). The energy sector is susceptible to unpredictable and dramatic swings in the price of oil.

  Learn More: The 8 Most Volatile Sectors
• What industries outperform during recessions?

  Some bright lights for investors during recessions can i﷽nclude consumer staples, groceries, alcoholic beverages, cosmetics, and discount retailers. Companies in these spaces either offer consumers essential items, non-essential goods at the best price, or small luxuries and comforts that people can and want to make room for in tighter budgets.

  Learn More: 5 Recession Resistant Industries