TGIF, Intelligent Diversification
After Wednesday's weakness I wrote that the uptrend would resume soon. Yeah, like the next day. Volume was low yesterday and that suggests a lack of serious demand...or a lack of supply that any buying will blow through. Today its mixed but the leaders are doing their job of leading. PCU, CI, MCD, to name a few, are all in the portfolio and continue to act well.
In some cases diversification is a proxy on ignorance. In others, diversification is an intelligent way to invest since it provides exposure to different areas and on any given day, week, etc, the action will come from somewhere. A concentrated portfolio runs the risk on missing out on sectors that do well. A good example might be the materials sector. It's not a mainstream area, names don't roll off the tongue easily, and its easy to pass on stocks where you lack enough knowledge. But, the benefit of our quantitative, systematic approach is to select stocks that make it by the numbers and buy the ones that act the best. This put a ton of materials (pun intended!) stocks on our books. Voila, one of the best acting groups and we have some. Intelligent diversification. There's a lot to be said for it!
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this newsletter (article), will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter (article) serves as the receipt of, or as a substitute for, personalized investment advice from Geller Capital Management, LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. A copy of our current written disclosure statement discussing our advisory services and fees is available for review upon request.
In some cases diversification is a proxy on ignorance. In others, diversification is an intelligent way to invest since it provides exposure to different areas and on any given day, week, etc, the action will come from somewhere. A concentrated portfolio runs the risk on missing out on sectors that do well. A good example might be the materials sector. It's not a mainstream area, names don't roll off the tongue easily, and its easy to pass on stocks where you lack enough knowledge. But, the benefit of our quantitative, systematic approach is to select stocks that make it by the numbers and buy the ones that act the best. This put a ton of materials (pun intended!) stocks on our books. Voila, one of the best acting groups and we have some. Intelligent diversification. There's a lot to be said for it!
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this newsletter (article), will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter (article) serves as the receipt of, or as a substitute for, personalized investment advice from Geller Capital Management, LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. A copy of our current written disclosure statement discussing our advisory services and fees is available for review upon request.
posted by David Geller at 1:08 PM
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