If you’ve ever looked at an asset class chart you will see that every year the winners and losers vary year to year. The dilemma is that we don’t know exactly which asset class will be the number one performer any year. In 2011 the Barclays Capital U.S. Bond Aggregate Bond Index was up 7.84%; while the MSCI Emerging Markets Index was down 18.17%. It is important to invest in asset classes that have a low correlation to the stock market as well. Keep in mind that diversity will not make you bullet proof to market declines, but it can help make the roller coaster ride much smoother. Call me today to make sure you are well diversified.
*All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
*There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
Authored by: Scott Flowers, LPL Wealth Advisor