Diversification

Wall Street's watchword has always been diversification, but what does it mean and why do they say it?

The standard Wall Street definition is flexible because each broker or financial planner will vary the portfolio based on your age and income. They say that the younger you are the more risk you should take and the older you are the less risk. They design a group of individual stocks, mutual funds and bonds to fit your personal profile and inclination toward risk.

For a young guy under age 35 they will put you into more high flyer type stocks, hardly any mutual funds and no bonds. As you go over 40 they start adding bonds to your mix and nearing retirement you will find a huge portion in bonds. Their goal is to have your money fully invested at all times and hope for a return of about 12% annually.

Why a little here, a little there? Because they have no idea how to make money so they hope that one segment of this hodgepodge will make enough to money to offset losses in the other area. They never look at each group separately for its performance and they NEVER tell you to sell anything at a loss so you can move into an area that is earning better profit. Wall Street brokerage houses really have no idea how to make money. Their job is to make commission. These portfolios that have been designed for all the little investors were made that way so they would not be sued by dissatisfied clients.

If you complain about poor returns they say everyone does it this way. Brokers have been taught this type of thinking for so long they think it is right and any other approach is heresy. If you want to do it differently you have to do it on your own. Why do these financial geniuses want you to be fully invested? If you had cash in your account you might take it out. And mutual fund managers never want you to take your money because they get paid by the amount of money in the fund, not on the investment return. Some investors write nasty letters to fund managers. Folks, save the postage. There is only one thing they understand - when you move your money elsewhere.

Rule One: Don't buy any individual stocks. You are not qualified and probably don't have the time to find issues that are going up. Rule Two: Buy only no-load mutual funds at a discount broker. Which ones? Only those that are going up and outperforming 99% of all other funds for the past 6 and 12 months, no longer. When they quit going up, diversify by moving your money to a better fund. Rule Three: Learn to time the market so you will not be caught in big downdrafts. Even the best funds go down then. Your broker will tell you can't do this because he doesn't know how.. It can be done. There will be times when you are 100% in cash.

These three simple rules are my answer to diversification, but will never be taught by Wall Street.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

http://www.mutualfundmagic.com; 1-888-345-7870

Chicago limo Skokie ..

In The News:

Technology expert Kim Komando gives her tips and tricks on enhancing your user experience a smartphone and other devices you use everyday.

A new camera called NUCA uses artificial intelligence to create deepfake photos of subjects by stripping away clothing in close to real time.

The Kimberley Kube trail-ready camper has a compact but spacious design and combines luxury, functionality and ruggedness for a weekend getaway.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Emails instructing you to reset your password for an account may be legitimate, or they may be scams. Kurt "CyberGuy" Knutsson explains.

Northrop Grumman's Manta Ray uncrewed underwater vehicle aims to revolutionize undersea missions — it glides through the ocean without human assistance.

Learn how to work Google's calendar application to streamline and organize your daily tasks from technology expert Kim Komando.

If you do not want Facebook to have automatic access to your private photos, follow our tips to protect yourself. Kurt “CyberGuy" Knutsson shows you how.

Kurt “CyberGuy" Knutsson goes into detail about Apple’s recent iOS update that allows iPhone users to instantly translate spoken language simply by using the Action Button.

Safeguarding your digital life with a reliable physical backup isn't just a precaution, it's a necessity. Kurt “CyberGuy" Knutsson provides the essential backup checklist.

Kurt “CyberGuy" Knutsson reveals how a Redditor exposed false recycling claims at their apartment, highlighting a report that only 21% of U.S. recyclables are processed.

Kurt "CyberGuy" Knutsson offers a travel toolkit featuring five technology tools to help you with booking flights and hotels for your summer vacation.

The bubble behind the clock on your iPhone can appear in different colors. Kurt "CyberGuy" Knutsson explains what each of those colors mean.

Scammers are using the power of artificial intelligence to mimic voices of people and are using the fake voices to commit crimes, like kidnappings.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Tech guru Kurt "CyberGuy" Knutsson explains the science behind the Invisibility Shield, a 6-foot shield that makes people become invisible.

The International Olympic Committee on Friday announced plans to use AI in various Olympic aspects, including athlete identification, training and judging.

Tech guru Kurt "CyberGuy" Knutsson explains an easy trick to avoid squinting while working or surfing the web by zooming in on your personal computer.

Streaming giant Roku has recently been targeted by a pair of cyberattacks, and the company confirmed over a half million Roku accounts were compromised.

The Land Aircraft Carrier combines an all-terrain, six-wheeled vehicle with a two-seat aircraft, which features electric vertical takeoff and landing.

The European Union has sent TikTok a "request for information" on the video sharing platform's newest app, TikTok Lite, under the Digital Services Act, with the aim to clean up social media.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

The FBI is warning the public about a recent phishing scam via text that claims its targets owe money in Pennsylvania for unpaid road toll charges.

Your Apple Music settings may be revealing to your contacts what you're listening to. Kurt "CyberGuy" Knutsson explains the process to change those settings.

Learn how to secure social media accounts, implement legacy contacts, and create a digital estate plan to protect your online assets from 'ghost hackers' after your death.

Diversification

Stocks & Mutual Fund