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Diversification

 
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Old 18-08-2008, 10:49 AM   #1 (permalink)
Tropo
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Diversification

Diversification
Definition


A portfolio strategy designed to reduce exposure to risk by combining a variety of investments, such as stocks, bonds, and real estate, which are unlikely to all move in the same direction.
The goal of diversification is to reduce the risk in a portfolio.
Volatility is limited by the fact that not all asset classes or industries or individual companies move up and down in value at the same time or at the same rate.
Diversification reduces both the upside and downside potential and allows for more consistent performance under a wide range of economic conditions.

diversification Definition
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Old 18-08-2008, 10:54 AM   #2 (permalink)
crc_error
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I don't think people here like diversification!
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Old 18-08-2008, 11:01 AM   #3 (permalink)
Sim
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Originally Posted by crc_error View Post
I don't think people here like diversification!
Once again you are mis-representing what people say *sigh*
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This is a general comment only and does not constitute advice. Before making financial decisions you should seek advice from a professional adviser, who can take into account your specific circumstances and investment goals.
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Old 18-08-2008, 11:52 AM   #4 (permalink)
Mark Laszczuk
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crc,

Reading your posts over the last few days have reminded me why I decided to ignore you way back when. Thanks for the reminder.

Mark
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This is a general comment only and does not constitute advice. Before making legal or financial decisions you should seek advice from a professional adviser, who can take into account your specific circumstances and investment goals.
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Old 18-08-2008, 12:33 PM   #5 (permalink)
crc_error
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Originally Posted by Mark Laszczuk View Post
crc,

Reading your posts over the last few days have reminded me why I decided to ignore you way back when. Thanks for the reminder.

Mark
no worries, my contributions to this forum will be withdrawn.

Have a nice day.

{edit} all comments removed.
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Old 18-08-2008, 01:41 PM   #6 (permalink)
BV
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Originally Posted by crc_error View Post
I don't think people here like diversification!
CRC

I do, it's just that I see no much point in diversifying when nearly all asset classes are coming down.

IMHO It's best to concentrate my investments on the best sector till the markets have settled.

Cheers
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