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| DIVERSIFICATION REDUCES PORTFOLIO
RISK |
|
- Using bonds moderates the risk of stocks.
- Increasing cash when stock market risks rise reduces market
risk.
- Including a number of investment themes spreads theme
risk.
- Use of large, medium, and small-capitalization stocks reduces
cap-risk.
- Including international exposure moderates risks of US markets
alone.
- Stocks diversified across 10 standard sectors to spread sector
risk.
| 1. Basic Industries |
6. Busines Services |
| 2. Consumer |
7. Technology |
| 3. Health Care |
8.
Regulated |
| 4. Natural Resources |
9. International |
| 5. Financial Services |
10. Miscellaneous |
- 25-30 stocks held, with initial positions of 3-4%, spreads
company risk.
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