The Power Of A Diversified Portfolio


Just a quick note for today.

Just over a month ago, I wrote an article for Seeking Alpha in which I suggested 20 Top Stocks For A Monthly Dividend Portfolio along with 2 “bonus” suggestions.

Today, Apple was hit by a Wall Street Journal article confirming rumors of iPhone 8 production delays. General Electric got trashed by a negative JP Morgan note. Speaking of JP Morgan, it too got hit by, from the best I can tell, a continuation of concerns over falling interest rates. And Starbucks appears to have another general case of the blues.

Guess what? All of these stocks are in my portfolio. They are represented by the areas highlighted in red below. I also highlighted AT&T, falling solidly as well, for good measure.

Ah, but go back up and take a look at AbbVie. Up 6.26%! Why? It turns out that they received a favorable decision with respect to patent protection for key drug Humira. You’ll see AbbVie as one of the areas featured in green above. I also highlighted some positive moves in Johnson & Johnson, 3M Company, and Microsoft.

Bottom line? On a day when two of my holdings were hit with very specific bad news and another fell fairly sharply based on overall economic conditions, the overall portfolio is only down .16%.

Here’s another picture, captured within a minute of the screen capture of my portfolio. It’s the status of the market averages, from CNBC.

My point? A well-diversified portfolio will serve you well, even on days when some of the components get hit with a little bad news.

Even so, don’t limit yourself to these 20 stocks. In a follow-up article, I suggest 7 ETFs to help you create a truly diversified portfolio.

Happy investing!


Image and article originally from Read the original article here.