The Important Role of Diversification

On Saturday, i discussed the important role of diversification in rebuilding your portfolio. Diversification allows your portfolio to grow through difficult market conditions, and can protect you from the wild swings in equity markets. Many portfolios I review are made up of several equity oriented mutual funds. This is not diversification. Bonds, cash, preferred shares, real estate, and even options all have their place in a well constucted portfolio. If you think that your portfolio needs a second opinion, give me a call.