Diversified Stock Investing

In this day and age of trying to plan for the future while making a quick buck it is important to diversify our investing into several different sectors so as to give ourselves the best chance for long term growth. Not all sectors always grow at the same times. Sometimes its banking and finance, sometimes its technology or retail, and other times its manufacturing or metals. I believe its best to dedicate our money in several different areas and do the due diligence necessary to pick the right stocks.

Penny and Sub-Penny stocks should never get more than 20% of my total money I have to invest. That is like my play money if I must play with fire. I like a breakdown of 30% in banking and finance, 30% in technology or retail and 40% in bio pharmaceutical stocks.

Banking and Finance:

After the 2008 crash, the government stepped in and started unprecedented banking and finance reform.
It is my opinion that based on those reforms given a similar crash, the federal government will not ever let a large major bank go bankrupt. So, my money would be in 2 larger banks or finance companies and I would do my due diligence and look at the long term growth projections in those banks. I would then sit on them through the highs and lows and get my continued growth in that sector. I am not going to throw out tickers or recommendations as I want you to do your homework and pick your own as that is what empowers you through your own hard work and dedication.

Technology:

Have you ever bought a piece of technology like a phone or television that is the best piece ever and then six months later see the new and improved model that makes yours like a dinosaur? I sure have.
The technology sector is always developing new and improved ideas of how to make our lives easier and lazier and in my opinion is a solid investment area if you are in the right companies. Again, do your due diligence and pick companies that you can relate to their products through your own personal everyday use. Then, pick a couple of companies and invest another 30% of the total money you have available between those couple of companies.

Bio-Pharmaceutical Companies:

This is personally my favorite sector. I like it because people are always sick and we are always looking for ways to cure and alleviate ailments and diseases so I see it as having unlimited growth potentials.                     Bio-Pharmaceutical companies are rich in information about the results of new tests and drugs therefore allowing me to position myself at the right times to maximize my gains and minimize my losses. Investing in these companies though does take a little more ongoing monitoring so I would only get in them if I have the time to watch them closely. Again, 40% of my available money to invest would be put in these stocks.

Happy trading and Good luck investing in YOUR future.


The opinions expressed in this blog are mine and mine only and are not intended to be recommendations. As always never invest money you cannot afford to lose and do your own Due Diligence.