Stockbrokers don't mean ill will. However, there are opportunities available that they will advise against, even though it has been proven time and time again that the inclusion of certain asset classes will improve the performance of your overall portfolio. Let me repeat that: There are opportunities that stockbrokers will advise against, EVEN though it has been proven TIME AND TIME AGAIN that the inclusion of certain asset classes will improve the performance of your overall portfolio.
Hard to believe?
The articles below explain the concept of portfolio diversification and support their claims with cold, hard data. You not only benefit from the performance improvement, but you also in effect protect yourself from volatile market conditions by including asset classes with low correlation. Every market has bear and bull periods, and regardless of the holding or contract, there will be gains and losses. But when you diversify, you have the ability to lessen the severity of the losses, or even avoid them altogether. Typically when one market is up the other is down. Portfolios that are 100% one asset class, are more vulnerable. Investing in asset classes with low correlation reduces your risk, period. Major stock brokerage firms will not recommend this investment strategy because it moves capital out of their market share, and more importantly, out of their pocket.
The vehicle for portfolio diversification we speak of is Managed Futures and Commodities. Utilizing an experienced Commodity Trading Advisor (CTA) can substantially improve your overall performance. Please read the studies below and contact us here for more information. We provide an initial consultation as well as an Investment Starter Kit, both free of charge. We look forward to hearing from you.
