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Altlantic International Partnership Headlines: How much diversification do you really need?
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Altlantic International Partnership Headlines: How much diversification do you really need?
By Walter Updegrave
http://money.
cnn.
com/2011/07/12/pf/expert/portfolio_diversification.
moneymag/index.
htm
NEW YORK (Money) — How much...
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Altlantic International Partnership Headlines: How much diversification do you really need?
By Walter Updegrave
http://money.
cnn.
com/2011/07/12/pf/expert/portfolio_diversification.
moneymag/index.
htm
NEW YORK (Money) — How much diversification do I really need? In an attempt to spread risk and
maximize return, is it possible to over-diversify a portfolio? — Nick Poole, Burbank, Calif.
Not only is it possible to overdo diversification, but I believe some advisers and investment firms actually
encourage investors to go too far.
They do so by touting a smorgasbord of “alternative” investments,
ranging from private equity, hedge funds and currencies to absolute-return funds, commodities and ETFs
that cover every nook and cranny of the market.
(Anyone for a fertilizer ETF? How about
aluminum?)Don’t get me wrong.
The case for building a portfolio with a broad mix of assets is sound.
Spreading your money among a variety of investments that don’t all move in lockstep, allows parts of
y
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