Is Your Portfolio as Diversified as You Think it Is?


Diversification should be an important part of everyone’s strategy when it comes to investing, but it can be easy to either over or under diversify. Many people think they’re diversified, but when you dig deeper on any given portfolio, we find that’s often not the case.  

You want to choose a variety of assets – stocks, bonds, cash and others – but you also want to choose ones whose returns haven’t all historically moved in the same direction, and, ideally, assets whose returns typically move in opposite directions to help your portfolio hold up better in down markets.  

Another important aspect of building a well-diversified portfolio is that you try to stay diversified within each type of investment. It’s also smart to diversify across stock holdings by market capitalization (including small, medium, and large caps), sector, and geography. 

Something else to consider is stock overlap or duplication between funds. Many people select what they think are very different funds, when in fact they may not be. For example, if you hold several funds, they may be diversified on their own. But if you were dig a bit deeper on them of these, you might notice that many of the top holdings of the different funds are the same, meaning that you’re not nearly as diversified as you had though. 

Another key issue to maintain diversification is rebalancing.  Rebalancing is the mechanism to replenish diversification. Without rebalancing, a portfolio tends to become more concentrated in the assets that have performed well. The benefits of the original plan start to erode. With the relative strength in equities over bonds, US equities over international stocks, and growth stocks over value stocks in recent years it’s entirely possible portfolios have become less diversified and need to be adjusted.      

When you do rebalance, it’s important to take advantage of tactical tilts based on market and macroeconomic conditions. This is where your financial professional should play an important role.  

So, as you can see, diversification may not be as simple as it sounds, particularly as your portfolio grows.  

Most Recent

Understanding the U.S. Dollar and Recent Fitch Ratings

Posted By Lineweaver Financial Group
September 07, 2023 Category: Finance, Money, Dollar, Fitch, Rating

We have received questions recently regarding the U.S. Dollar and countries like Brazil, Russia, India, China and South Africa (BRICS) potentially developing alternative currencies and financial institutions. While we agree that the U.S. fiscal and monetary situation has deteriorated over recent years, and it is likely that China and Russia in particular are pushing to find alternatives to the U.S. Dollar and financial institutions, we do not view this as an imminent threat to the global economy or your investment portfolio.     The U.S. Dollar dominates global trade flows and we do not expect this to change in the near term. It’s estimated that the total value of global trade in 2022 was $32 trillion. The U.S. Dollar was 88% of those trades1. That is only down from 90% in 19881. Further, a reserve currency like the U.S. Dollar must be deep enough to support such large demand, be overseen by a country that can support large current account deficits, has a clear rule of law, does not impose capital controls, and supports property rights. To us, none of the BRICs demonstrate this resiliency. As such, we believe the U.S. Dollar remains the world’s reserve currency for the foreseeable future.     We think maintaining a diversified portfolio of U.S. and International stocks and bonds is the best defense against any potential actions by these countries, which is how we have invested your

Introducing Lineweaver WealthTrac Analysis

Posted By Lineweaver Financial Group
August 24, 2023 Category: Finance, Wealthtrac, Analysis, Portfolio

We’re excited to share the arrival of our new product, the Lineweaver WealthTrac Analysis. This is a unique tool that helps us not only evaluate your current and future financial goals but to also consider emotions and behavior in a way that helps set you up for success.  This is a powerful tool that evaluates your current and future financial plan in 5 different areas: Personal Information, Financial Information, Investment Goals, Risk Tolerance, and Risk Score. It considers variables like your employment, career and income, your Social Security, what you want out of your retirement, what your current financial situation looks like, and much more. By doing this, it can give you a great analysis whether you’re still working or retired. Wealth planning is always about establishing a goal and working toward it. To help client’s do this, we look at their top three financial goals. We measure where they are now, and what it would take to meet their timeline. Part of those goals is looking at three time horizons and the strategies that are best matched with each. You must think about the short-term, middle-term, and long-term goals.  A truly unique aspect of this program is how it lets us visualize how your risk tolerance and your emotional tolerance match up to the risk you’re actually taking, and the progress you’re making toward your goals.  Our unique analyzer also goes even further and offers you a score based on all of thi

LFG Celebrates Christmas in July with Santa at Captains game

Posted By Lineweaver Financial Group
August 17, 2023 Category: General, Lineweaver Financial Group

Team members of Lineweaver Financial Group and their families headed out to a Lake County Captains Game to celebrate Christmas in July and posed with Santa during a Santa Claus costume

Finance (47)
General (40)
Commentary (35)
Newsletter (30)
Economy (27)
Blog (24)
Portfolio (23)
Educational (16)
Economic Commentary (12)
Retirement (9)
Healthwatch (7)
Letter From The President (7)
Taxes (6)
Tax (5)
Q3 (4)
Bonds (4)
Estate Planning (4)
Health (4)
Market (4)
Lineweaver (3)
Markets (3)
Dividends (3)
New Year (3)
Inheritance (3)
IRA (3)
Tax Planning (3)
Trump (2)
Coordination (2)
Economic Outlook (2)
Investments (2)
Investment (2)
HealthWatch (2)
Market Update (2)
Volatile Market (2)
Strategies (2)
Spotlight (2)
Insurance (2)
Q2 Newsletter (2)
Awards (2)
Crain\'s (2)
Financial (2)
Trust (2)
2019 (2)
Interest Rates (1)
Market Review 2017 (1)
2021 Outlook (1)
Sales (1)
Real Estate (1)
Fraud (1)
Market Commentary (1)
Eductional (1)
News (1)
Investment. Advisers (1)
Eat More (1)
Healthy Living (1)
Your Retirement Playbook (1)
Sleep (1)
Steps (1)
End Of Year Taxes (1)
Tax Strategies (1)
Black Swan (1)
CARES Act (1)
Stimulus (1)
Nutrition (1)
Probiotics (1)
Letter From The President New Years Resolutions (1)
2020 (1)
2020Q3 (1)
Election (1)
Medicare (1)
Medicare Supplements (1)
Technology (1)
2020Q4 (1)
Markets Don\'t Pick Sides (1)
Fitch (1)
Pros And Cons (1)
Education (1)
Postnuptial (1)
Analysis (1)
Goals (1)
Cyber (1)
Security (1)
Finances (1)
Spam (1)
Email (1)
Banks (1)
Wealthtrac (1)
Cosultation (1)
Prenuptial (1)
Lineweaver Financial Group (1)
Agreements (1)
Nuptial (1)
401k (1)
Crains (1)
529 (1)
IRS (1)
Resolutions (1)
Second Opinion (1)
Planning (1)
Business Coordination (1)
College (1)
Recession (1)
Holiday (1)
End Of The Year (1)
Donations (1)
Dollar (1)
Series (1)
Estate Plan (1)
Financial Professionals (1)
Retirement 401k 529 (1)
Money (1)
Financial Services (1)
Employee (1)
Clients (1)
School Tuition (1)
Cefex (1)
Certification (1)
Certified Financial Planner (1)
Medical News Today (1)
Healthcare (1)
Charity (1)
Reallocation (1)
In Laws (1)
Trusts (1)
Bloodline Trust (1)
Marital Trust (1)
Vacation From Investments (1)
Screens (1)
Eye Strain (1)
RMD (1)
2018 (1)
Summer (1)
Market Review (1)
Market Pullback (1)
Rising Interest Rates (1)
Financial Quarterback (1)
Quarterly Newsletter (1)
Tax Law (1)
James Lineweaver (1)
Exercising (1)
Vacation Home (1)
Q3 Newsletter (1)
Advice (1)
Top Financial Strategies Of The Wealthy (1)
New Website (1)
Trading (1)
New Tax Law (1)
Financial Planning (1)
529 Plans (1)
Charitable Giving (1)
Q2 (1)
Social Security (1)
LFG (1)
Bitcoin (1)
Client Spotlight (1)
Bruce Motko (1)
Travel Tips (1)
Travel (1)
Distribution (1)
Drink Water (1)
Market Volatility (1)
Investing (1)
Cryptocurrency (1)
Diversification (1)
Stocks (1)
Annuity (1)
Big Banks (1)
Stock (1)
Buy (1)
Sell (1)
Dementia (1)
Lose Weight (1)
Review (1)
Credit Unions (1)
Pse (1)
Savings (1)
Congress (1)
Checking (1)
Banking (1)
Longterm Care (1)
Tariffs (1)
Elder Law (1)
POA (1)
Power Of Attorney (1)
Charitable (1)
Annuities (1)
Sell In May And Go Away (1)
Traditional Ira (1)
Market Outlook (1)
Anne Graffice (1)
Financial Goals (1)
Jim Lineweaver (1)
New Years Resolutions (1)
Healthy (1)
Cooking (1)
Tips (1)
Q1 (1)
Pro Football Hall Of Fame (1)
David Baker (1)
Roth Conversion (1)
Sring Cleaning Your Finances (1)
Keeping Your Mind Sharp (1)
Q2 2019 (1)
Defer Tax (1)
Legal (1)
Wills (1)
Transfer Real Estate (1)
Chad Roope (1)
Roth Ira (1)
Rating (1)
+ Show More

Terms and Conditions | Privacy Policy | Disclosures

Nominees in the Top 100 Magazine selections are not required to pay a fee for consideration. Individuals appearing in half and full page editorials, have paid a fee for additional exposure. Candidates for consideration are selected utilizing proprietary software. Top 100 Magazine analyzes the results before making their final selections. Financial Professionals and/or wealth managers must also met the following criteria; 1. Be registered with the SEC as a registered investment advisor or a registered investment advisor representative; 2. Have no more than 1 filed complaint with a regulatory agency; 3.Never been convicted of a felony. Third-party rankings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the Financial Professional by any client nor are they representative of any one client's evaluation. Lineweaver Financial Group appeared in Money magazine in 2015, Fortune Magazine in 2016, WTAM 1100 in 2018, Forbes in 2020, Channel 5 in 2020, and Top 100 in Finance in 2023.

Lineweaver Financial Group ©
Powered by Virteom Logo Virteom