Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Central Banks May Ramp Up Gold Buying - 18th Apr 21
How to Get Rid of Driveway Weeds With Just WATER! 6 Months later NO Weeds, Ultimate Killer! - 18th Apr 21
State of the European Markets - DAX, FTSE, CAC, AEX, SMI, IBEX 35, S&P/MIB, Euro Stoxx 50, RTS - 18th Apr 21
Einvestment Fund: What You Need To Know About Investments - 18th Apr 21
Google Alphabet (GOOG) AI Deep Mind Stock Trend Analysis - 17th Apr 21
Stocks and Bonds Inflationary Slingshot - 17th Apr 21
Best Smartphone Selfie Stick Tripod Review by ATUMTEK Works with Samsung Galaxy and Iphone - 17th Apr 21
How to Give Budgie's First Bath | Easy Budgie Bathing and Water Training with Lettuce - 17th Apr 21
Record-breaking Decrease in New Passenger Vehicle Sale in Europe - 17th Apr 21
US Stocks Climb A “Wall Of Worry” To New Highs - 16th Apr 21
Gold’s Singular Role - 16th Apr 21
See what Anatomy of a Bursting Market Bubble looks like - 16th Apr 21
Many Stock Market Sectors Are Primed For Another Breakout Rally – Are You? - 16th Apr 21
What Skyrocketing US Home Prices Say About Inflation - 16th Apr 21
Still a Bullish Fever in Stocks? - 16th Apr 21
Trying to Buy Coinbase Stock on IPO Day - Institutional Investors Freeze out Retail Investors - 15th Apr 21
Stocks or Gold – Which Is in the Catbird Seat? - 15th Apr 21
Time For A Stock Market Melt-Up - 15th Apr 21
Stocks Bull Market Progression Now Shows Base Metal Strength - 15th Apr 21
AI Tech Stocks Buy Ratings, Levels and Valuations - 14th Apr 21
Easy 10% to 15% Overclock for 5600x, 5900x, 5950x Using AMD Ryzen Master Precision Boost Overdrive - 14th Apr 21
The Current Cannabis Sector Rally Is Pointing To Another Breakout - 14th Apr 21
U.S. Dollar Junk Bond Market The Easiest Money in History - 14th Apr 21
The SPY Is Nearing Resistance @ $410… What Is Next? - 14th Apr 21
The Curious Stock Market Staircase Rally - 14th Apr 21
Stocks are Heating Up - 14th Apr 21
Two Methods in Calculating For R&D Tax Credits - 14th Apr 21
Stock Market Minor Correction Due - 13th Apr 21
How to Feed Budgies Cucumbers - Best Vegetables Feeding for the First Time, Parakeet Care UK - 13th Apr 21
Biggest Inflation Threat in 40 Years Looms over Markets - 13th Apr 21
How to Get Rich with the Pareto Distribution - Tesco Example - 13th Apr 21
Litecoin and Bitcoin-Which Is Better? - 13th Apr 21
The Major Advantages Of Getting Your PhD Online - 12th Apr 21
Covid-19 Pandemic Current State for UK, US, Europe, Brazil Vaccinations vs Lockdown's Third Wave - 12th Apr 21
Why These Stock Market Indicators Should Grab Your Full Attention - 12th Apr 21
Rising Debt Means a Weaker US Dollar - 12th Apr 21
Another Gold Stocks Upleg - 12th Apr 21
AMD The ZEN Tech Stock - 12th Apr 21
Overclockers UK Build Quality - Why Glue Fan to CPU Heat sink Instead of Using Supplied Clips? - 12th Apr 21 -
What are the Key Capabilities You Should Look for in Fleet Management Software? - 12th Apr 21
What Is Bitcoin Gold? - 12th Apr 21
UK Covd-19 FREE Lateral Flow Self Testing Kits How Use for the First Time at Home - 10th Apr 21
NVIDIA Stock ARMED and Dangeorus! - 10th Apr 21
The History of Bitcoin Hard Forks - 10th Apr 21
Gold Mining Stocks: A House Built on Shaky Ground - 9th Apr 21
Stock Market On the Verge of a Pullback - 9th Apr 21
What Is Bitcoin Unlimited? - 9th Apr 21
Most Money Managers Gamble With Your Money - 9th Apr 21
Top 5 Evolving Trends For Mobile Casinos - 9th Apr 21
Top 5 AI Tech Stocks Investing 2021 Analysis - 8th Apr 21
Dow Stock Market Trend Forecast 2021 - Crash or Continuing Bull Run? - 8th Apr 21
Don’t Be Fooled by the Stock Market Rally - 8th Apr 21
Gold and Latin: Twin Pillars of Western Rejuvenation - 8th Apr 21
Stronger US Dollar Reacts To Global Market Concerns – Which ETFs Will Benefit? Part II - 8th Apr 21
You're invited: Spot the Next BIG Move in Oil, Gas, Energy ETFs - 8th Apr 21
Ladies and Gentlemen, Mr US Dollar is Back - 8th Apr 21
Stock Market New S&P 500 Highs or Metals Rising? - 8th Apr 21
Microsoft AI Azure Cloud Computing Driving Tech Giant Profits - 7th Apr 21
Amazon Tech Stock PRIMEDAY SALE- 7th Apr 21
The US has Metals Problem - Lithium, Graphite, Copper, Nickel Supplies - 7th Apr 21
Yes, the Fed Will Cover Biden’s $4 Trillion Deficit - 7th Apr 21
S&P 500 Fireworks and Gold Going Stronger - 7th Apr 21
Stock Market Perceived Vs. Actual Risks: The Key To Success - 7th Apr 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

My favorite way to diversify Investment Portfolios...

Stock-Markets / Investing May 01, 2007 - 09:33 AM GMT

By: Money_and_Markets


Tony, here. In just two weeks, I'll be flying over to Asia. It's going to be a whirlwind trip, with stops in Hong Kong, Shenzhen, Bangalore, Singapore, and Manila. And I'm frantically trying to put together all the last-minute preparations.

That's why I've asked Dan Ascani, Executive Vice President of our separate affiliate, Weiss Capital Management, and Portfolio Manager of three ETF programs, including the Weiss ETF Strategic Allocation Portfolio, to fill in today.

My favorite way to diversify …

Only a few years back, most investors employed a traditional stock and bond portfolio to achieve their financial goals.

It was also a time when investing primarily in the U.S. provided investors with some of the most promising investment opportunities the world had to offer.

Today, I believe that both of these old investing tenets may no longer hold true.

In fact, I think it may be more important than ever to consider diversifying your investments in two important ways — globally (both the U.S. and overseas) and by asset type. Here's why …

The U.S. still offers a broad range of investment opportunities. But under the right conditions, it may be possible to get higher returns, with managed risk, by including investments from various areas of the world in your investment portfolio.

Investment professionals have been using broad diversification like this for years — think of the number of hedge-fund managers who have been successful, in part, because of their international trading experience.

However, many individual investors have yet to catch on to the potential benefits of diversification.

Here's what I mean …

I've been following the markets my entire adult life, and I love watching trends develop. And one thing I've learned is that a picture is worth a thousand words. So to show you why I strongly encourage diversification for Weiss Capital Management's clients, take a look at this chart …

The height of the bars in the chart shows the percentage by which foreign stocks surpassed or lagged U.S. stocks. And as you can see, over the rolling 12-month periods, international and U.S. stocks regularly take turns outperforming each other.

Now, it's not easy for investors to figure out when one group will start its next period of outperformance. But maybe they don't have to!

Reason: By allocating a portion of their assets between international and domestic stocks, they'll automatically participate in each market cycle.

Without hindsight as a guide, it's virtually impossible to be certain how long each group of stocks will outperform the other. So it's not a far stretch to recognize that investing globally — holding both domestic and international investments — may provide the greatest opportunity for the long haul in exchange for the risks of owning equities.

Of course, I think investors also should consider diversifying across different asset classes — stocks, bonds and alternatives such as precious metals.

Again, this is important because more diversification, especially when based on a prudent allocation method, is associated with reduced risk. At the same time, it can open up even greater chances for growth, especially when encompassing such a broad range of asset classes all over the world.

Here's perhaps the best part: These days, diversifying your portfolio doesn't have to be difficult …

ETFs Make it Easy to Get Stakes in Different Countries and Asset Classes

When it comes to diversification, I think it's smart to choose the most flexible, lowest-cost investment vehicles you can find. And for me, that's far and away exchange-traded funds — ETFs.

These break-through investment vehicles not only make it easy for investors to achieve diversification around the world, including the U.S., and across varied asset classes, they do it all with lower costs and greater flexibility than traditional mutual funds.

More importantly, with almost 500 ETFs now available and more expected to come later in the year, a diversified, multi-asset-class allocation strategy can now be accomplished in a single brokerage account.

For example, you can use ETFs to invest in stocks from Europe, the United Kingdom, Latin America, the Pacific Rim and China … U.S. Treasury and corporate bonds … gold, commodities, and other inflation-sensitive assets … even the real-estate sector.

Now that's what I call the ultimate in diversification.

In fact, by using only ETFs — in a single account — you can own a broadly diversified stake in what I believe are some of the world's best assets. I'm talking about …

  • Some of the most-promising industry sectors in the United States
  • Some of the most-reliable income-producing investments, such as bond ETFs and high-dividend ETFs
  • In-demand natural resources, including gold, silver and energy ETFs
  • Rapidly-growing foreign economies through ETFs tied to countries like China and Brazil and more developed economies in Europe and Asia
  • Even some of the most-solid foreign currencies, with ETFs linked to the euro, the Swiss franc or the Japanese yen.

This, to me, is the ultimate in diversification. Look at the past five years ending March 31, 2007…

The S&P 500 Index was up only 35.5% over the same period and the Lehman Aggregate Bond Index was up only 29.8%. 1

Most investors who limited their diversification strictly to U.S. stocks and bonds were likely to see performance that was generally limited to that range.

Meanwhile, over the same five-year period, the MSCI EAFE ® Index, which tracks a broad range of international investments, rose 108.1% and the Goldman Sachs Commodity Index was up 82.8%. 2

Of course there are no guarantees that this trend will continue in the future. However, investors who expanded their horizons and added foreign stocks and commodities to their stock and bond portfolio not only had more diversification, they were also able to enhance their overall portfolio returns during major market advances. During market declines, reducing exposure to international stocks and diversifying more capital into fixed income is one good way to manage risk, in my opinion.

Now, you can't buy these indices directly. But you can invest in ETFs that represent these indices, giving you access to similarly broad diversification. That's where Weiss Capital Management's ETF Strategic Allocation Portfolio comes in.

This core investment strategy, suitable for investors with a moderate risk tolerance, offers the potential for capital appreciation and managed risk by investing in a portfolio of exchange traded funds. It's strategically allocated across three different asset classes — equities, fixed income, and alternatives. When market conditions dictate, it also includes cash. And it spans domestic and international markets.

The Weiss ETF Strategic Allocation Portfolio has three simple goals: Broad diversification … risk management … and greater opportunity for growth during the right market conditions.

I think those are the same goals virtually any investor should have. And as I've tried to show you today, diversifying both globally and across different asset classes may be a great way to start achieving those goals.

Invest $250,000* in Weiss Capital Management's ETF Strategic Allocation Portfolio, if this program is suitable for you, before May 31, 2007, and permanently lock in this introductory management fee of just 1% (one percent). (For investments made after June 1, the fee will be higher.)

If you'd like more information on Weiss Capital Management's ETF Strategic Allocation Portfolio, just call us at 800.814.3045 or click here .

Best wishes,

By Dan Ascani,
Executive Vice President
Weiss Capital Management, Inc.
ETF Strategic Allocation Portfolio Manager

* New or additional investments only

P.S. For our data sources, as well as important disclaimers, please click here .

This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


01 May 07, 22:09

can you put ETF's into SIPs ?

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules