Home  |  Personal Finance  |  Investing  | 

Understanding U.S. and Foreign Stocks

What other categories are used to diversify U.S. stocks?

To properly view this site, javascript must be enabled and Flash version 9 or higher must be installed.
Get the latest Flash player
David John Marotta
President, Marotta Wealth Management, Inc., Marotta Wealth Management, Inc.
http://www.emarotta.com  
434-244-0000

David John Marotta is the President of Marotta Wealth Management, a fee-only financial planning and asset management firm in Charlottesville, Virginia. He is an oft-quoted writer and speaker on financial matters and his weekly financial column can be found at www.eMarotta.com

What other categories are used to diversify U.S. stocks?

 

This expert: 177,675 views

This series: 11,052 views

Download to Mobile Device
Tags:

Stocks

,

Money

,

Investment

,

Portfolio

,

Assets

Comments:

0 (Read Comments) (Add Comment)

Print

Transcripts

Host: What are the categories are used to diversify US stocks?

David Marotta: Another way to make sure that you are diversified within US stocks is to look at the different industries that you invested in. So for example, lot of people are invested in technology stocks, we had a client here in -- came to us in 2000 and thought he was diversified because he had five different mutual funds that were all aggressive growth and the number one holding in each one of them was Cisco and they also held the S&P 500 Fund and at that time, the number holding was Cisco, six different mutual funds but they are all hi-tech stocks. So, they all are all going to move in sink with one another because they are all in one industry. So, if we look at the different industries, we recommend you have some technology. Technology historically is one of the category that has good growth but technology should be limited to a small percentage of the portfolio. Healthcare is another one, Healthcare has the second highest level of growth, but it also has much less volatility and so Healthcare should have a little bit of an investment. So, if you look at all the different industries you need to make sure that you are diversified across all the industries.

Other Videos

  • How can I learn more about financial basics?

    How can I learn more about financial basics?

    In this video, Vikki Frank, Kandance Beamon, and Linda Stroman, financial education providers describe several key areas to address regarding debt reduction and elimination. This video is designed to deliver basic financial information to assist individuals and families to be able to identify goals and process strategies for their specific financial needs. The topics included in this video cover are: self-evaluation of debt load, budgeting strategies, understanding the effects on your credit and scores, why savings is important, how to develop a debt elimination plan, and the importance of financial education and how financial counseling may be useful.
  • Choosing a Financial Planner

    Choosing a Financial Planner

    In this video, financial planning professional and member of the Financial Planning Association®, Mark Johannessen, CFP®, describes the four important steps to take when choosing a financial planner. This video is designed for individuals trying to decide if they need the services of a financial planner. This video series includes an overview of knowing when you need the services of a financial planner, looking for a financial planner and choosing the right one, the importance of full disclosure and how to contact a financial planning professional.
  • What deduction options do I have when filing a tax return?

    What deduction options do I have when filing a tax ...

    Basic information to prepare an individual income tax return, Form 1040 and the basic schedules. This video is designed for those individuals who want to undertake the preparation of their tax return. There are tips and pointers for those who have attempted this feat in prior years.
  • Improving your Credit Score

    Improving your Credit Score

    In this video, financial planning professional and member of the Financial Planning Association®, Cal Brown, MST, CFP®, describes the four important steps to improving your credit. This video is designed for individuals who have poor credit and are looking for tips to improve their credit. This video series includes an overview of checking your credit, reading and correcting credit reports, improving your credit and getting out of debt.
  • What if I've tried to reduce expenses & still can't make my payment?

    What if I've tried to reduce expenses & still can't ...

    Give yourself every advantage when you're facing foreclosure. And get tips on how to avoid finding yourself in that situation. Expert Amelia Robinette explains some of the terminology associated with foreclosure and gives tips to help you get back on track.
  • What are the categories and types of U.S. Bonds?

    What are the categories and types of U.S. Bonds?