Zekeriya Ozturk, Chairman of the Financial Literacy and Access Association (FODER), issued a cautionary note to investors, advising them to exercise prudence when dealing with highly volatile stocks. He emphasized the importance of implementing a “portfolio diversification” strategy as a means of effective risk management.
Ozturk highlighted the significance of calculating risk in financial markets, emphasizing that it’s determined by the standard deviation of price changes within specific timeframes. He warned that stocks with significant daily fluctuations can pose substantial risks to investors’ portfolios.
Dispelling the misconception that past performance guarantees future success, Ozturk emphasized the need for widespread financial literacy, advocating for early education in this regard. He stressed that portfolio diversification is essential for minimizing risks, allowing investors to spread their investments across various asset classes and financial products rather than concentrating solely on individual stocks.
By adopting portfolio diversification, Ozturk asserted that investors can achieve more balanced and sustainable returns while effectively managing risks. He also highlighted FODER’s efforts in conducting educational activities to enhance financial literacy, emphasizing its role in elevating economic well-being on both individual and societal levels.
Ozturk concluded by emphasizing the importance of investors gaining comprehensive knowledge about financial products and markets, enabling them to make informed decisions and attain their financial objectives with greater ease.
Source: AA / Prepared by Irem Yildiz