diversification

What is diversification?


Diversification involves the planned distribution of investments across various securities to minimize the risk exposure to a specific industry or geographic segment. However, the risk of over-diversification exists, in which an investor can at best expect to mirror the market returns, minus any brokerage fees or management expenses.

The more brokers and the media praise popular stocks, the higher investor expectations are raised—and the farther they have to fall.
General Electric’s willingness to adjust keeps it a top blue chip stock, as it cuts its losses in finance and focuses on its strengths.
Many new ETFs have wide appeal and include a broad range of investment opportunities. They can also come with extra costs that investors should be aware of
ISHARES MSCI EMERGING MARKETS INDEX FUND $33.05 (New York symbol EEM; buy or sell through brokers) aims to track the MSCI Emerging Markets Index.

The fund’s geographic breakdown includes China, 23.0%; South Korea, 14.7%; Taiwan, 12.3%; India, 8.4%; South Africa, 8.1%; Brazil, 6.9%; Mexico, 4.8%; Russia, 3.9%; Malaysia, 3.1%; Indonesia, 2.4%; Thailand, 2.2%; and Poland, 1.6%.

Its top holdings are Samsung Electronics (South Korea), 3.0%; Taiwan Semiconductor (computer chips), 2.8%; Tencent Holdings (China: Internet), 2.5%; China Mobile, 2.1%; China Construction Bank, 1.7%; Naspers (South Africa: media and Internet), 1.5%; Industrial & Commercial Bank of China, 1.3%; Bank of China, 1.1%; and Hon Hai Precision Industry (Taiwan), 1.1%.

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Its niche in medical equipment testing has made Agilent Technologies one of our top U.S. growth stocks before and after its big spinoff.
ATLANTIC TELE-NETWORK, $73.32, symbol ATNI on Nasdaq, is raising its quarterly dividend by 10.3% with the October 2015 payment, to $0.32 from $0.29. This is the company’s 17th consecutive annual dividend hike. The shares now yield 1.8%. Atlantic owns wireless and wireline (traditional telephone and Internet) operations in the U.S. Southwest, New England, New York State, Guyana, Bermuda and parts of the Caribbean islands. The company continues to expand its wireless capacity and coverage. That’s paying off as customers use more mobile data for services like music downloads, mobile gaming and e-books....
Almost a century of uninterrupted dividends and a forceful growth strategy make 3M Company one of our Best Buys in U.S. stocks.
Is using the p/e ratio the first or last measure to analyze when picking stocks?
Microsoft’s Nokia purchase didn’t work out well, but cloud computing helps it remain one of the leading blue chip stocks in the tech world
We think conservative investors could hold up to 10% of their portfolios in foreign stocks. One way to do that is to buy carefully chosen exchange traded funds (ETFs) that have an overseas focus. The best ETFs offer very low management fees and well-diversified, tax-efficient portfolios of highquality stocks. Here’s a look at five international ETFs:...