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Portfolio Diversification

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A New York City-based financial industry expert with nearly two decades of experience, Sean Kemery serves as a financial advisor at a prominent financial services company, where he utilizes comprehensive investment strategies in working to help clients reach their goals. Sean Kemery has extensive experience in commodity trading and portfolio management.

Commodities are physical goods like agricultural products, raw materials, and natural resources (such as metals) that are traded in the financial markets. Investors typically use these products to hedge against inflation. Because many commodities are raw materials for the production of other goods, inflation usually causes the value of commodities to rise because goods that are in demand cannot be produced without them.

Portfolio diversification is the practice of investing in a variety of asset classes to increase potential returns and minimize risk. The goal of diversification is to invest in assets with disparate market dynamics. An example of a diversified portfolio is one that comprises a strategic mix of commodities, stocks, bonds and other securities.