What Does Diversify Really Mean?
5 Investments for a Diverse Portfolio
Everyone knows you should diversify your portfolio. When you wisely invest across the board, you have some protection if, in one area, your investments go south. Unfortunately, many retirees could suffer a rude awakening when they discover their portfolios aren’t as diverse as they originally thought. A big mistake many people make when trying to diversify their portfolios is to equate different industries with different investment types. For instance, investing in the stock market
better protect your financial future. I view portfolio diversification as having the right unique mix of the following asset classes:
Stocks, which can help your portfolio grow.
Bonds, for stability and income.
Real estate, that provides both a hedge against inflation and a low correlation to stocks — it may rise when stocks fall.
International securities, to provide growth potential and to help maintain buying power in an increasingly globalized economy.
is one of the best ways to grow your portfolio, but it is also the riskiest. In an attempt to mitigate some of this risk, investors often buy shares in different industries — from financial services to health care. They figure this way, if one industry takes it on the chin, their other investments will be able to make up for the loss. But what if the whole market is upside down like we saw in 2008 or 2000-2002? Owning stock across multiple industries doesn’t make a diverse portfolio. You need to have many different types investments performing specific roles in order to help
Cash & money markets, which gives you and your portfolio security and stability.
A diverse portfolio is no guarantee of safety. Each investment comes with some sort of risk, whether it’s volatility, interest rate, inflation, currency, etc. However, true diversification in investing can help mitigate the risks you face while affording your portfolio growth opportunity.
SUDOKU
INGREDIENTS
• 8 slices brioche, 1/2-inch thick • 1/4 cup creamy peanut butter • 2 large eggs • 1/8 cup heavy cream
• 2 teaspoons pure vanilla extract • 2 cups cornflakes • 2 tablespoons unsalted butter • 2 cups mixed berries • Powdered sugar, to sprinkle • Maple syrup, for serving butter. Once melted and up to temperature, add sandwiches, cooking on one side until golden and crisp, about 2–3 minutes. 5. Return sandwiches to baking sheet, add remaining butter, and repeat on other side. 6. Top sandwiches with berries, sprinkle with powdered sugar, and serve with maple syrup. 4. In a large skillet over medium heat, melt 1 tablespoon
DIRECTIONS
1. On a large baking sheet lined with wax paper, place 4 slices of brioche and spread 1 tablespoon of peanut butter on each. Cover with remaining slices, creating sandwiches. 2. In a pie plate, beat eggs with cream and vanilla. In another, coarsely crush the cornflakes. 3. Lightly soak sandwiches in the egg mixture, then dredge in cornflakes, pressing to adhere. Return to baking sheet.
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