All tagged portfolio

John Hood: State economy rests on diverse portfolio

RALEIGH — The late Harry Markowitz, who won the 1990 Nobel prize in economics for his work on portfolio theory, reportedly said “diversification is the only free lunch” in investing. By distributing your savings across a broad base of stocks, bonds, and other asset classes, you maximize long-term gains and minimize risk — assuming that the performance of the assets in question isn’t strongly correlated.