So how do you know how to properly diversify? There are certain asset categories that fulfill the proper methods of diversification. It is up to your advisor to know what these asset categories are and how they apply to your portfolio. I apply these methods of investing to certain clients depending on their age and risk tolerance and apply my fiduciary responsibility to my decision making as well. Just having a lot of "stuff" is not diversification, you must have the right stuff and the right amount of it. If you want to learn more about how this can apply to you visit my website or call me at 610-695-8748.
Incorporating a 21 point checklist with each client to make sure that all of the"little" things get taken care of so they don't become "BIG" problems.
Monday, October 25, 2010
Consternation about Investing?
Whether the market is going up down or sideways there is always some concern about the market and how that relates to or is influenced by the economy. It is a proven fact that long term investing combined with proper diversification is the first principle of successful investing. Harry Markowitz proved that in 1952 when he developed Modern Portfolio Theory and computers verified it in the early nineties and he even won a Nobel prize for it.
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