BATTING FOR THE WRONG TEAM

You can learn a lot about investing from professional sports – take baseball, for example.

When the baseball season starts, there are always “favorite teams” that everyone thinks will take the World Series that year.

But, you probably know that while there are favorites, no one knows who’s going to win until the end. You can’t predict the winner at the beginning of the season.

I like to think of baseball teams as the different asset classes that we can invest in.

Like baseball teams, there are favorite asset classes – the ones most people think will be winners. The Standard and Poor’s 500 (S&P 500) is like the New York Yankees of investing.

Everyone knows what the S&P 500 stock is – it’s big, and it’s done well in the past. But it doesn’t win all the time!

The problem is that, because the S&P 500 gets so much press and it’s all people hear about – people automatically think that’s where they should put all their money.

This has been a significant mistake for many investors – and the mistake is not diversifying your

investment portfolio.

Yes, in the short term, a diversified portfolio might not give you the most exciting return – it’s designed that way. But, over the long term, it’s intended to provide you with consistent growth – equal to or even exceeding the growth of a non-diversified portfolio without the volatility and risk.

So, unlike baseball – don’t pick your favorite team and hope for the best.

Want to talk about your portfolio to make sure that it’s as diversified and growth-oriented as possible? No worries – I’ve got you covered. Just book a quick chat with me by calling 661-775-3704 or go to BookAChatWithJohn.net to schedule a meeting online.

Regards,

John Mears