Monday, July 28, 2008

More notes on Asset Allocation Diversification

Hi Everyone!

Just a few more notes on diversification. This is for those who want to improve their portfolio.
Diversification is a good defense/protection strategy for those who aren't as versed quite well with the market. And I suspect, that's for most of us here. Not everybody is a seasoned stock broker. And even these professionals make some mistakes and lose a lot. If you don't have enough money to throw away, don't put all your eggs in one basket.

Diversification comes in at least the following 3 ways:

1. Diversify your risks. The following have varying degrees of risks. Generally the higher the risk, the higher the profit. That's one of the basic laws of investing.
- invest in equities (stocks), bonds, mutual funds, real estate, pension plans, time-deposits

2. Diversify your currencies. If you invest in just one, you might gain in the share prices but lose in the conversion. If you diversify, you offset your other investment (like in the relationship between the Peso and the US Dollar).
- There is the Euro, the Dollar, the Peso, etc...

3. Diversify your companies. Each company has a different fund manager, hence different investment strategies. Their strategy could spell the difference between your success adn your failure. If you're not too familiar with the fund managers, I suggest you diversify in this as well.
- Philequity, MAA, Prudential Optima, Grepalife Assets, AyalaLand, Crown Asia, etc..


In terms of diversification, I can license you to become a broker/dealer for all these diversification strategies.

Offer different investments from mutual funds, pension plans, equities, and bonds. Offer different currency investments like Euro bond funds, Dollar bond funds, and peso bond/equity funds. Offer different companies. These are competing companies. One will always try to outperform the other. But you can offer all of them. You can give only the best for yourself and your clients.

Contact me below if you want to not only get smarter financially, but gain the tools to apply what you have learned.

(43-681) 10 262-546

jelloso@gmail.com

jay_elloso@yahoo.com

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