Portfolio Management - Asset Allocation, Diversification, and Rebalancing
Market Truism: Diversification Is Your Friend
Even in a Greater Bear market such as the one in 2008, there's still a mini bull running somewhere and or not all stocks are going down at once or at the same pace of decline.
It is a good time now to review your portfolio and ensure that your portfolio is diversified across a few sectors, and in each sector it is good to stay with the sector's top few leaders. There are obvious reasons that why these stocks are the top leaders in their sector. Open your eyes wide and your mind too to accept this fact - there will always be leaders and laggers in the market; but we want to stay with the leaders to profit from the market.
Just remember the primary objective of buying stock is to make money and making money is the foundation of building up your wealth. Compounding is the engine driving your wealth - the most dollar in the least time.
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