Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

Archive for the ‘diversification’ Category

Top Investment Strategy: Make
Sure You Are Diversified

By | August 29, 2011

Diversification is the key to success in the stock market, especially given the current negative bias. Whether you buy or short, or add put and call options, the key is akin to being a good pitcher—mix them up and you increase your chances of success. The reality is that it doesn’t matter if you are investing in the real estate market, gold, stocks, art, or antique cars; the best way to protect your wealth is not to put all your eggs into one basket. This is obvious, but I’m surprised at how few investors actually follow this.