Tuesday, September 26, 2006

Before You Leave The Beaten Path... (Business Week)

Brokers can tell compelling stories about quirky ways to diversify, but take a good look at the details before you leap

"Sure, it's risky, so you should only invest 5% of your assets." How many times have you heard that caveat tacked on to a sales pitch from a broker or adviser trying to get you to invest in some quirky venture? If you're not careful with those 5% or 10% bets, you can quickly end up with 25% or more of your portfolio sitting far out of the mainstream, in what are often illiquid investments. Still, those targeted bets could make sense if you tend to have nearly all of your liquid net worth tied up in U.S. stocks and bonds. . . .

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