Reply #13: Diversify [View All]

[gravity]

You should be investing in the long term, and buying a assortment of funds is the best way to capitalize on the unexpecting changes in the future, while minimizing your risks.

International funds are good, but don't forget the US stocks either. The economy looks bad right now, but things will get better in the US five years from now, so its good to have some exposure. Maybe 50% international and 50% in the US. That way you will be hedged against fluctuations with the dollar, good or bad. Also buy some fixed income funds which are good esepcially towards retirement to preserve some of your capital.

If you want to add a little kick to your portfolio, place a small percentage into an emerging markets fund.

But if you still are unsure what to do, see a financial advisor, because the riskiest thing you can do is invest without knowing what you are doing.