The Plan: Diversification

"Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth…whether a tree falls toward the south or toward the north, wherever the tree falls, there it lies." Ecclesiastes 11:2-3

The wise hiker chooses a path that has delivered many to the sought after destination.  Diversification is a strategy proven to deliver investors to their destination time after time.  You can see the Lord's wisdom of diversification in the passage above and we all have heard the wisdom of "Don’t put all your eggs into one basket." The bursting of the technology bubble is still fresh in most of our minds.  We’re also seeing the results of a real estate bubble and the difficulty of liquidity a burst bubble brings. Diversification is our map, our compass, to deliver us to the X on our investment map. 

Diversification needs to be evaluated based on many economic factors, some of which include: Global, Domestic, Dollar vs. Foreign Currency, Sectors of the economy, Market Capitalizations, etc.

"Diversification is absolutely essential in the management of a portfolio."

Proper diversification is accomplished through an open relationship with the client and the financial professional. The majority of our clients have all the resources they’ve allotted for securities invested with us. This, coupled with the open relationships we share with our clients, allows us to make sure each of our clients are diversified, consistent with their objectives and risk tolerance.