Emerging Markets in Your Portfolio

Give serious consideration to having emerging market stocks in your portfolio.
Consider that emerging markets, at market-exchange rates, are expected to have 35% of world gross domestic product by 2013, according to the International Monetary Fund. To reach 35% of world GDP reflects remarkable growth. In fact, the emerging markets share of global economic

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Asset Diversification Across Classes Reduces Risk

One of the most important concepts in investing is diversification. Spreading your investments across asset classes reduces risk and enables you to increase your overall long-term investment return by allowing you to rebalance, thereby selling high and buying low. You can’t rebalance if you don’t diversify.
Sissy Spacek, the oscar-winning actress, when asked what

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We Treat Things We Know As Friends

The Wall Street Journal (9/4/2008) mentions a Citigroup report from early 2008 that found that a portfolio should have 25 – 30 stocks to minimize stock-specific risk. The Citi study found that only one in ten stocks consistently outperform relative to the S&P 500 over the past 20 years during any three-year period.
The bad

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Generating Wealth from Stock

The Wall Street Journal on 8/27/2008 ran an article titled “The Ranks of the Ultrawealthy Grow”. The article indicates that for individuals who have net worth of $20 million or more that “the single biggest asset category by far was publicly traded stock. In second place was closely held stock.”
The article states:
“The IRS

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Create an Asset Mix Using Diversification and Your Target Portfolio

It’s important to allocate your investments across asset classes. However, diversification doesn’t mean you have to make it complicated.
Consider a portfolio that has investments in these asset classes:
U.S. Large-Cap Stock Fund
Foreign Funds, including emerging markets
U.S. Small-Cap Stock Fund
Value Fund
Bond Fund
Inflation-Protected Bond Fund
Money-Market Fund
One of the most important things you can do to protect your

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How to Start Investing – Asset Allocation 101

In order to build net worth you should have investments in companies that sell products or services. To truly prosper you need to take advantage of innovations, motivations, synergies, strategies and branding.

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