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It 10 years ago that investment bank Bear Stearns collapsed; an event we now know was a precursor to a larger market collapse in the fall of 2008. With that in mind, GROW staffer Bob Sullivan looks at the lessons we should have learned by now.

His top lesson is “if you don’t understand it, don’t invest in it.” He’s referencing subprime mortgages but says it’s something investors should apply today to things like crypto currency. He also advises a more cautious investment approach, targeting long-term plays, and diversifying your portfolio.

Prior to the Great Recession, so much money was being made on Wall Street and in banking that investments in the financial sector seemed like a sure bet. Except there’s no such thing—which is why diversification is so important. Spreading your money across a mix of stocks lowers the risk of your portfolio tanking when one company or sector struggles.

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