People who invest in high-risk investments do not generally do well in an economic downturn. Aggressive portfolios do have a time and a place. They are a gamble that sometimes allow the stockholder to do exceedingly well. However, if stockholders do not diversify their investments, the said stockholders are likely to lose much of the time and money that they invested. Conservative investments such as certificates of deposit (CDs), generate income at a steady, predictable rate.
In the field of investing, what is unpredictable usually garners a high return.
