Micheal Hart , portfolio manager of the Friedberg Diversified Fund thinks his fund has done well because he doesn t just invest in stocks. The portfolio s strength is in its diversity. We invest in a wide range of futures. The commodity futures could be anything from gold, copper, crude oil, and grains to coffee and sugar. Financial futures could include equity indices, treasury notes, and currencies, says Hart.
Some investors place too much emphasis on stocks.
A diversified portfolio offers the greatest protection. Investing is more than just stocks. I believe that we are experiencing a critical and unique time in our economic history. Alan Greenspan and the Feds think that they can correct the market by cutting interest rates. It would be the first time in history if Greenspan were able to beat the business cycle with interest rate cuts.