Individual stocks were hit hard last night.

GOOGL fell 4.6%.
AVGO fell 4.8%.
AMD fell 6.7%.
MU fell 6.8%.

But broad-market ETFs moved far less.

This is exactly why asset allocation matters.

A strong company can still suffer a sharp sell-off because of earnings, valuation pressure, regulation, or sector rotation.

If too much of your portfolio is concentrated in a few stocks, one bad session can cause serious damage even when the broader market remains relatively stable.

ETFs do not eliminate losses.

What they do is reduce single-stock risk.

I still hold individual stocks because they offer higher upside.

But ETFs remain the foundation of my portfolio.

Individual stocks are the satellites.

ETFs are the core.

The goal is not to avoid every red day.

It is to build a portfolio strong enough to survive enough red days and stay invested for the long term.

#Investing #ETF