In one dietary fiber is good. Nutritionists encourage us to incorporate it into our daily nutrition. But balance is also very important, so we have to diversify by adding other nutrients in our food intake.

So, yes, the fiber is good, but too much of a good thing can throw your system out of whack.

Loyalty in investment nowhere

As simple as that sounds, the same concepts involved in your investment – especially over-allocation of your portfolio to a single stock. Perhaps this stock for hello, but also for many years, as a result, it has earned your loyalty. Maybe you buy stocks for many years, because it is your job in the company, or you inherited it.

Therefore, you can use this decision – or failing to make – the stock may be based on an emotional, rather than what the economy wise.

Mixed sentiment rarely provides an upside, but too often, the risk is greater than greater return.

The solution is to look at your portfolio, objectively, to this point, you may need guidance from a financial advisor. Ask yourself, “Can I get, I still have to lose?”

You only need to look at 2008–09 Nian what happened, when the stock market took a tumble, to know the financial impact of you put all your eggs in one basket. You should manage their own risk, rather than risk.

It to manage your portfolio through diversification is very important. Including different asset classes, such as equities, fixed income and cash.

In order to comment:

• • Investors often a combination of over-allocated to a single stock.
  • Mixed emotions investment needs to be avoided.

should be avoided

• Concentrated holdings of a company, because to do so at greater risk than the potential rewards posture.
• Investors need to keep different asset classes, industry and style diversification.
• Investment is risk management, the process does not assume the risk; asset allocation is the key to long-term investment.
• A significant increase in the overall risk, including people when a stock portfolio is veryBig part of it.
• A company who holds a large position should develop a plan, either divestment or hedge his or her risk of investors.

If you do not have to re-balance or take a look at the overall assets ALLOCA tion, now is a great time to do so, and to make the necessary adjustments to keep your back to your target allocation.

In other words, buy some flowers, eggs to those around.