Brad Creger, author and President/CEO of BFF Financial, Inc., takes his cue from St. Patrick’s Day to illustrate how investors get fooled into thinking their assets are diversified when they are only spread out between one asset class or different shades of green.
GLENDALE, CA., March 10, 2016: President/CEO of BFF Financial, Inc., Brad Creger, posted a new article on his website entitled, “With Too Much GREEN, You Might See RED,” in which Creger points out that just because colors come in different shades does not make them a different thing.
Creger writes, “Saint Patrick’s Day will soon be here and my children will be wearing green to school to avoid getting pinched by the other children. For us adults we may also be wearing green on that day too. “
“Does it matter what shade of green you wear?” asks Creger. He replies, “Nope. Any green will do. In fact, you can even mix and match and wear all types of greens together and get away with it.” He continues adding, “On any other day of the year, we all KNOW we can’t wear mismatched green clothing and leave the house.”
Creger poses, “Where else do we accept having too much of one thing and not think anything of it?” He has a ready response, “I have found that many investors do not understand asset allocation. No matter what type of stock mutual fund you have, it is considered to be in the “stock” asset class. It doesn’t matter that you have a U.S., international and/or an emerging market stock fund as these all invest in stocks. The same is true if you have large-cap, mid-cap and/or small-cap funds, as these too are just a twist on the “stock” asset class.”
According to Creger, “Too much green in the form of stocks, stock mutual funds and even other “securitized” investments could “pinch” your portfolio values.” Remember that no investment strategy, including asset allocation, can guarantee a profit or protect against loss. As always, it’s your money… but you might want to review your asset allocation with an eye towards risk reduction as this could help you avoid seeing red.
The entire article can be read at https://www.bfffinancial.com/2016/03/08/with-too-much-green-you-might-see-red/
About BFF Financial, Inc.
BFF Financial, Inc. is a diversified financial services company dedicated to planning, coordinating and implementing the tax, legal and financial affairs for a select group of families and business owners that have typically had substantial planning already done.The difference between just having it done and having BFF involved is significant. BFF Financial is devoted to Simplifying The ComplexTM for those families who have been invited to join the BFF Financial family.
About Brad Creger
Brad is currently the President/CEO of BFF Financial, Inc., an independent diversified financial services firm with their main offices located in Glendale, CA. He is also the co-author of The Soul of Success with Jack Canfield and Uncommon featuring Brian Tracy.