What to do?

We've heard a lot of questions about what investors should do in their portfolios to account for the risk of a default. We continue to preach the benefits of diversification among and within asset classes, both domestic and international. (Source: major brokerage house)

The issue discussed by this analyst was: what to do in an environment characterized by financial risk with countries, not just banks, in danger of defaulting?

How should you structure your portfolio?

The advice given was "diversification". I do not agree in the strongest way. If you really have to diversify across all asset classes why not by SPY, the ETF for the S&P 500. This is the ultimate diversification.

The problem is that this strategy has produced zero return since 1999, for more than 10 years.

What is the answer then? I believe that selecting few investments that "fit the times" is the secret to making money. But you have to do your homework.

My personal portfolio is in only one asset class (not cash and not gold) which has done extremely well since 1999.

You may want to subscribe to The Peter Dag Portfolio to find out what I think.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest

To find out more about my in depth views of the markets and my strategy just visit our website https://www.peterdag.com/ where you can subscribe to The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific investment portfolio.

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