Should You Diversify Differently?

Two corrections for the broad market in 2018, combined with bear markets in numerous sections of the marketplace have many investors dealing with a decision: do I have the right level of diversification in my portfolio or do I need to make some changes? It's likely that many people aren't diversified along with they should be.

In this episode, Mark Riepe breaks down the ways your cognitive predispositions may be avoiding you from building a really varied portfolio. Joining Mark is Omar Aguilar from Charles Investment Management. Mark and Omar go over how you can tell if your portfolio isn't diversified enough– and how you can change that.

You can learn more about how diversification operates in this study: "Equity Portfolio Diversity, ()" William N. Goetzmann and Alok Kumar, Evaluation of Financing, 2008

Omar Aguilar discusses home country bias in investing in this post: "The Comforts of Home () "

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Essential Disclosures:

The information offered here is for basic informative functions just and must not be thought about a customized recommendation or individualized financial investment suggestions. The financial investment strategies mentioned here might not appropriate for everyone. Each financier needs to review a financial investment method for his or her own particular scenario before making any investment choice.

All expressions of viewpoint go through change without notice in reaction to shifting market conditions. Information contained herein from third-party suppliers is gotten from what are considered reputable sources. Nevertheless, its precision, completeness or dependability can not be ensured.

Connection is a statistical step of how two financial investments have historically relocated relation to each other, and varies from -1 to +1. A connection of 1 shows a perfect favorable correlation, while a correlation of -1 indicates a perfect unfavorable connection. A connection of no implies the assets are not associated.

Diversification and asset allotment strategies do not ensure a profit and can not secure versus losses in a decreasing market.

International investments involve additional threats, that include distinctions in monetary accounting standards, currency changes, geopolitical threat, foreign taxes and regulations, and the capacity for illiquid markets.

Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed‐income financial investments are subject to different other dangers consisting of changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax implications and other factors

Investing includes risk consisting of loss of principal.

Hypothetical examples are for illustrative purposes only and are not intended to represent the previous or future performance of any specific financial investment.

Past efficiency is no guarantee of future outcomes.

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Should You Diversify Differently?

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