What we think about stock investing
- Broad diversification across all segments of the domestic stock market helps reduce volatility.
- Large-, mid-, and small-capitalization stocks should be held in proportions roughly similar to that of the overall U.S. stock market.
- Investors should hold both growth and value stocks in similar proportions.
- Investing between 20% and 40% of your stock portfolio in international stocks can help you diversify.
All investing is subject to risk, including the possible loss of principal. Diversification does not protect against a loss in a declining market or ensure a profit. Foreign investing involves additional risks including currency fluctuations and political uncertainty.