Untangle And Rejoice

The idea here is to untangle your portfolio from the benchmark indexes such as S&P or Dow. In that way, your portfolio won't be totally dependant on it. Since a stock's return is dependant on its companies performance as well as the general market conditions, this can help somewhat. You can try a variety of techniques.

For e.g. you can handpick and spread your investment to a BIG pool of well researched stocks, where each stock just holds a SMALL percent of your total investment. Your portfolio can include good quality, high-growth, different sector stocks(including some risky ones), as well as some ADRs. Then you buy and sell stocks based on an each stock's individual progress (since each stock's individual progress could be timed slighlty different than the benchmark index itself).

In addition to this, you can apply dollar cost averaging to different stocks, in addition to the same stock(traditional way). How does dollar cost averaging on different stocks work? Basically, you keep on purchasing a different stock for each stock purchase instead of continuing to purchase the same stock after each interval. This can help, especially in post recession, when you are not certain which stock might never make it back UP. This should also turn out to be benefitial to the companies as well, since you will spread out your investments at a time when they need it the most.


You can actually try out and employ all sorts of traditional and variation techniques that could possibly untangle your portfolio from the benchmarks for a more secure, stable and lucrative investment.




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