Wednesday, April 27, 2016

Being smart with $$ - With stocks, don't just buy what you know

Doctors love healthcare stocks.  Programmers love tech stocks.  Bankers love financial stocks.  It has been said "buy what you know."  But if each group is buying different sectors, how can they all be right?  They can't.  But if they buy a stock index fund that tracks the whole market, they don't have to worry which sector will perform best or worst and in the long run they will enjoy the upside of the market without the added volatility of being exposed only to one sector. So I say to you Mr. Plumber:  Roto Rooter should not be the only stock in your portfolio.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

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