The Importance of Portfolio Diversification

The recent tariffs announcement on April 2^nd had a significant effect on the public U.S. stock market.  However, other areas of the market were affected less severely, while some areas even noted a positive return.  For example, many areas of the bond market experienced a positive return in the immediate wake of the tariffs announcement, while international markets experienced a much more modest year-to-date decline due to significant gains earlier this year.  These differences demonstrate the importance and effectiveness of portfolio diversification.  Ensuring your portfolio includes investments uncorrelated to the U.S. stock market (such as international stocks, private credit, private equity, and real estate) can help maximize your long-term performance and minimize losses during market downturns.  If you have any questions, please feel free to reach out to your BMSS Wesson professional, call our office at (205) 982-5555 or visit our website at www.bmsswesson.com.