{"id":4411,"date":"2006-05-11T00:00:00","date_gmt":"2006-05-11T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"investing-dont-hedge-your-bets-after-all","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/05\/2006\/investing-dont-hedge-your-bets-after-all.html","title":{"rendered":"Investing: Don&#8217;t hedge your bets after all"},"content":{"rendered":"<p>FORTUNE Magazine &#8211; When it comes to investing, diversification is the closest thing to a free lunch. Simply by spreading money around unrelated investments &#8211; municipal bonds that zig when <a href=\"http:\/\/money.cnn.com\/quote\/quote.html?symb=WMT\">Wal-Mart<\/a> and <a href=\"http:\/\/money.cnn.com\/quote\/quote.html?symb=MSFT\">Microsoft<\/a> shares zag &#8211; investors can reduce risk without reducinglong-term returns. At least, that&#8217;s always been the rule of thumb. <\/p>\n<p>  But what happens if the asset classes whose price movements are out of sync with the U.S. stock market suddenly stop marching to their own drummers? That, says <a href=  \"http:\/\/money.cnn.com\/quote\/quote.html?symb=MER\">Merrill Lynch<\/a> strategist Kari Bayer Pinkernell, is the predicament in which investors find themselves today.<\/p>\n<p>Don&#8217;t get Pinkernell wrong. Like most everyone in the Wall Street advice business, she&#8217;s a firm believer in diversification. She wants investors to spread their risk by mixing in bonds, foreignstocks, commodities, and real estate with the large-cap U.S. stocks and funds that tend to make up their core holdings.  <\/p>\n<p>  Such common-sense advice took on added urgency in the aftermath of the 2000 market crash, when many people found themselves calamitously overexposed to all things technology. (See Andy Serwer&#8217;s  column, <a href=\"http:\/\/money.cnn.com\/2006\/05\/02\/magazines\/fortune\/meeker_fortune_051506\/index.htm\">&#8220;Mary Meeker 2.0&#8221;<\/a>) Back then, Pinkernell and colleague Richard Bernstein repeatedly bemoaned  the lack of investor interest in energy and commodities.<\/p>\n<p>  &#8220;During the tech bubble, everyone put their eggs in one basket,&#8221; she says.<\/p>\n<p><a href=\"http:\/\/www.cnn.com\/money\/magazines\/fortune\/fortune_archive\/2006\/05\/15\/8376864\/index.htm?cnn=yes\">Read Complete Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>FORTUNE Magazine &#8211; When it comes to investing, diversification is the closest thing to a free lunch. Simply by spreading money around unrelated investments &#8211; municipal bonds that zig when Wal-Mart and Microsoft shares zag &#8211; investors can reduce risk [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-4411","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4411","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=4411"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4411\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=4411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=4411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=4411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}