Shepherd Wealth & Retirement - April 2018

DEBUNKING

DIVERSIFICATION Minimize Risk and Maximize Strategy

One of the key concepts in investing is diversification. Some of the biggest losses we have seen — or perhaps you have heard about on the news — could have been reduced by diversification. But does that mean that more diversification is better? Some advisors think so, claiming that the strategy solves most investing problems. But there is one problem: If you diversify everything, your portfolio could include asset classes, stocks, or other investments that could hurt rather than help your return. Building a diversified portfolio is key to avoiding painful loses in individual companies or concentrated positions. But we believe in striving to generate consistent returns and getting the most out of your investments by TAKE A BREAK!

eliminating weak stocks, asset classes, and other investment areas. That way, you have better results with less risk. We do this by measuring strength (demand) for all the different investment choices and including the strongest (positive, fastest uptrend) in your portfolio. This gives you enough diversification, but it aims to keep the weak and declining areas out. Another way to avoid those painful losses is to have a strategy to sell declining assets before they become a big loss. Having a well-diversified portfolio doesn’t guarantee great returns. Market fluctuation is always going to be a factor when it comes

investing in our last edition and in our recently published book, The Forever Millionaire, and this method is an innovative way to pinpoint your investment strategy. Instead of buying and holding with an overarching diversified market portfolio, what if you could take your money and consistently plug it into asset classes that appear to be in their optimal seasons? This is why you need a money manager who is capable of providing this service. A tailored plan using the correct strategies could generate better returns for you than just letting your portfolio drift with market conditions. Contact us today and let us show you how this can address some of the biggest challenges with investing.

to investing. This means the concept of diversification has to be targeted in its application. We covered the seasons of

Recipe inspired by Food and Wine Magazine

Lemon Breadcrumbs ROASTED ASPARAGUS WITH

INGREDIENTS • 2 pounds asparagus • 1/3 cup plus 2 tablespoons extra-virgin olive oil • Kosher salt • Freshly ground pepper

• 2 garlic cloves, minced • 1 cup panko breadcrumbs • 1 tablespoon flat-leaf parsley, chopped • 2 teaspoons lemon zest • Juice of one lemon (not packaged lemon juice)

DIRECTIONS 1. Heat oven to 425 F. Toss asparagus with 2 tablespoons olive oil and season with salt and pepper. Place on baking sheet and bake for 20–26 minutes, turning asparagus halfway through. 2. When asparagus is nearly done, heat remaining olive oil in a small skillet over medium heat. Add garlic and cook for 1 minute. Add breadcrumbs and cook for 5 minutes, stirring frequently. Remove from heat and fold in parsley and lemon zest. 3. Transfer asparagus to serving platter, drizzle with lemon juice, and top with breadcrumb mixture. Investment advice is offered through Shepherd Wealth Group, a Registered Investment Advisor doing business as Shepherd Wealth & Retirement. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. Registration as an investment advisor does not constitute an endorsement of the firm by securities regulators, nor does it indicate that the advisor has attained a particular level of skill or ability. Content should not be construed as personalized investment advice or as an offer to buy or sell, or a solicitation of any offer to buy or sell any securities mentioned. Certain content was prepared by a freelance journalist.

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