Wall Street isn't a casino. For example, perhaps you work in the health-care field and have a particular interest in pharmaceutical companies. The theory is that different sectors react differently to economic conditions. So while some sectors will decline in value, they will be offset by other sectors that are appreciating. Stock markets in different parts of the world tend to rise and fall at different times.
Mutual funds are a good way to get an international presence.
Consider funds that invest in several countries outside the United States or funds that concentrate in one particular area of the world. You're taking some of today's risks and conditions and waiting some weeks or months to buy more. No matter which path you choose, Gard says, it's important to understand the purpose of diversification. Copyright 1999-2001 MyPrimeTime, All Rights Reserved. Inc. The names of actual companies and their products mentioned on this site may be the trademarks of their respective owners.