Brett Stedge proposes that in addition to the traditional ways of diversifying your portfolio which include:

• allocating assets into stocks, bonds and cash
• placing assets in a variety of sectors such as pharmaceuticals and technology
• placing assets in companies in a variety of companies according to market capitalization
• placing assets according to whether they are value or growth

Investors can also diversify their portfolios by investing in the stock and financial markets of different countries according to sector, type of securities (equities versus bonds) and levels of development (Asia versus Europe).

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