Hi Everyone,

It’s time to remind you not to put all your eggs in one basket. Few Easter’s have brought market conditions so demonstrative of this. Most of your portfolios should be reviewed for areas of concentration. Here’s why.


Balanced Baskets
Trying to keep investment strategies on track can get a bit challenging when market conditions are like this. Many investors believe that recent strength in equity markets translates to moving bulk of assets into them. Let’s use the Easter holiday to remember of few things:

1) A rise in an indice such as the Dow Jones Industrial Average or the S&P 500 does not mean that all equity holdings have risen in value. These are measurements not investments so we need to look at what you own and make adjustments where needed to either capture gains or correct underperformers.

2) Many of you still tend to let political news influence your investment selection. It’s time to remember the importance of separating the two. One way is to check your global or international holdings. Do you have exposure to the world or are you concentrated in the United States? What is an appropriate balance for your unique situation?

3) We talk about buying low and selling high all of the time. It’s one of the hardest things to get investors to do. I highly recommend taking profit and balancing portfolios to avoid concentration. I firmly believe that concentration in a particular holding or asset class has done more to harm the average investor than most anything else.

This is a beautiful time of year and many are feeling quite optimistic compared to the last few years. That means it’s time to carry those baskets carefully! If all the eggs are in one or if they all look the same, consider some balance.

Until next week,
Susan R. Linkous

The above comments are opinions. Please seek advice before investing. Past performance is no guarantee of future results. All indices are unmanaged and may not be invested into directly.