Personal Finance Guide

Posts Tagged ‘equity diversification’

History has shown that leadership among market segments has changed — often dramatically — from year to year. By diversifying your equity investments among the different capitalization ranges, styles, and geographic regions, you can increase the likelihood that your portfolio will weather changes in market conditions. The common reminder that past performance is no guarantee of future results is certainly true. Looking at past returns can be very confusing. 

Source: Wiesenberger, 2003, for the period 12/31/1992 to 12/31/2002. The table is presented for general information purposes only and is not meant to depict past performance or predict the future performance of any particular investment. 

Performance of all cited indexes is calculated on a total return basis with dividends reinvested. Foreign securities involve risks in addition to those associated with domestic securities, including foreign Currency Risk and political instability. Investing in small- and mid-size companies involves risks in addition to those associated with large-size companies. 

• International is represented by the Morgan Stanley Capital International (MSCI) EAFE Equity Index.

The indexes do not reflect any expenses, fees, charges, or taxes. These indexes are unmanaged and should not be considered investments. Past performance is no guarantee of future results.