Other way of diversification

Besides having stocks in different market cap, I also try to have stocks in different country.  This way I don't depend all my stocks in a single country's economy.  I divide stocks into different continents to help tracking the stock easier.  

Here are how my stocks are distributed among the continents:

• North America: 58.62%
• Asia: 7.74%
• Europe: 33.64%

Typically in North America and Europe there are more developed nations so I try to leave most of my eggs there while still have a little bit of my stock in Asia so I also have some of my investment in emerging market.

More on diversified portfolio

Now that I have at least one stock in every sector, the next thing to check is the market cap. Typically large cap stock doesn't move as drastically as small cap stock so it is a good idea to keep a good mix of stocks in all caps. I also have stocks in micro-cap which is more risky yet would probably yield more return.

Here are the percentage distribution of my holding for different caps.

• Large Cap: 26.64%
• Mid Cap: 21.8%
• Small Cap: 25.96%
• Micro Cap: 31.41%
  

All area covered

To make my portfolio diversified, I added more stocks so that now I have all the sector covered. Today all my stocks did well because of the huge rally. Below are my choices of the stocks and the sectors.

• Basic Material: AK Steel Holding(AKS)
• Capital Goods: Trinity Industry(TRN)
• Conglomerates: General Electric(GE)
• Consumer Cyclical: Ford(F)
  
• Consumer Non-Cyclical: Dr. Pepper Snapple(DPS)
• Energy: Petrobras Energia Parcipaciones(PZE)
• Financial: US Bancorp(USB)
• Healthcare: China Medical Technologies(CMED)
• Service: Office Depot(ODP)
• Technology: Taser International(TASR)
  
• Transportation: Dryships(DRYS)
• Utilities: A-Power Energy Generation System(APWR)
  

My Portfolio 3-9-2009

My current investment strategy in this challenging market is diversification. To make sure I get myself covered at all grounds, I try to pick one stock in every sector. And today even though most major indices are down at least 1%, I actually managed to get my portfolio up about 4.87%. Below are my choices of the stocks at the moment.

• Basic Material: AKS
• Healthcare: CMED
  
• Transportation: DRYS
• Consumer Cyclical: F
• Capital Goods: TRN
• Conglomerates: GE
• Service: SIRI
• Technology: TASR
• Financial: USB