We’ve all heard the mantra: diversify your portfolio and experts said today’s economic climate doesn’t change that advice.
Fear and Greed are the two emotions that accorinding to University of Missouri personal finance planning chair, Rob Weagley, rule the world of finance. If Missourians can’t see past those feelings, it’s time to hand control of the finances to someone who can. Weagley, said feelings shouldn’t get in the way of planning for your future.
"You’ve got to have a plan as an investor," he said. "You have to maintain a well diversified portfolio. And you need to stay on track with it. And if you can not do it on your own because you’re too emotional, you need to get somebody to help guide you through it and that is what financial professionals, good ones, are all about."
A good financial planner will make sure you have a varied mix of stocks and bonds.
"Because typically when one of them is doing really, really well, you know, one sector is not going to be doing very well, " he said. "You know but the next year, it may be the other sector that does well and the first sector is not."
Weagley said the best way to think of your financial portfolio is like a horse race. One will win and one will lose, but if you have several horses in the race your odds of picking the winning one is a lot better.