PT  - JOURNAL ARTICLE
AU  - Michael Christensen
TI  - A Key Rate of Sector and Country Diversification
AID  - 10.3905/jwm.2018.21.2.021
DP  - 2018 Jul 31
TA  - The Journal of Wealth Management
PG  - 21--26
VI  - 21
IP  - 2
4099  - https://pm-research.com/content/21/2/21.short
4100  - https://pm-research.com/content/21/2/21.full
AB  - The degree of diversification is the most important issue investors should consider when forming portfolios or choosing portfolio managers. This article argues that high-net-worth (HNW) investors can usually do a lot to increase their degree of portfolio diversification, not only with respect to the market risk but also regarding a whole battery of potential risk factors that impinge on the portfolio. In particular, the article suggests a method to determine the degree of industry diversification and country diversification, which may be useful when HNW investors compare portfolios.TOPICS: Portfolio construction, wealth management, global, risk management