8    Real Diversification for Today’s Real World: Sectors and Choices

TRADITIONAL PORTFOLIO management strategies tend to promise capital security through various iterations of asset allocation and diversification. The assumption is that diversification helps inoculate a portfolio from systematic or market risk and the potential losses associated with it.

The premise is true, but not necessarily the approach. Unfortunately, the reality is that in our increasingly interdependent and uncertain global marketplace, most of these approaches fail to really control risks and maximize gains. The result: You and your money come up short over the long term.

The “New ROI” takes portfolio growth and protection in a different direction. Rather than creating ...

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