Why do you suppose athletes cross-train?
Why should a competitive runner ever ride a bike or step near a dumbbell?

The answer is simple: diversification reduces the risk of injury and can improve overall performance. The same holds true for your investments. Investing all of your money in a single company or industry makes for an “injury-prone” portfolio. A downfall impacting that particular industry (recent oil prices come to mind) will have a direct performance impact on your entire investment. By diversifying your money across companies, sectors and countries, you reduce the risk that a single event will put your entire portfolio out of action.

Want a free diversification review of your investments?

Contact Thomas Johnson, Cascade Financial Group, ThomasJohnsonMB@outlook.com