for their portfolio. The reason: “If the U.S. economy continues to slow, other areas of the world might be growing at a faster rate.”
Johnson and other experts conclude that investors should have a diversified portfolio that includes bonds and cash (shares in money market funds, for example). “Even if stocks fall for a long period, investors are likely to have other assets that are remaining stable or performing well.”
For Deirdre Ann Gilbert, a 35-year-old New York resident, building a diversified portfolio is key. But her primary goal is to make money for retirement. A financial advisor has helped to redirect her investments toward accomplishing that goal.
After beginning to invest three years ago, her portfolio, consisting of growth, income, tax-free income, and global funds, is now worth an estimated $40,000.
Gilbert admits she’s learning quickly by working with her broker. “A little education never hurt anyone,” says this research assistant for a New York brokerage firm and entrepreneur in the fashion industry. “We can all expect a downside in the market. The key is to study before making a decision to invest.”