Don’t Be Foolish. Diversify.

December 5, 2013
by Michelle Perry Higgins

Start Shopping for Long-Term-Care Insurance at 45What’s the biggest lesson investors should take away from 2013?

The lesson is that diversification does matter and to think otherwise is foolish. Even though the Dow Jones Industrial Average and the S&P 500 continue to blow through historical highs, establishing and maintaining a defensive barrier (i.e., fixed income) is still critical in a well-managed portfolio.

Yes, I understand it may sometimes be tempting to put all your eggs in one basket after this year’s performance in the equity markets, especially domestic.  However, without a crystal ball it is impossible to guess which asset class will lead the race in 2014.