| Welcome to hyperdiversification.com (TM) hyperdiversification (TM) - maintaining a portfolio that contains positions that profit during a bull, bear, and neutral stock market. It may also include investing in non-equity investments such as real estate, bonds, money markets, etc. This differs significantly from diversifying among sectors. Often times the market in general has a major decline such as shortly after 9-11 or advances rapidly during the tech bubble. A sample portfolio might be long stocks (by owning the stocks or calls), short unfinancially sound stocks (either by purchasing puts or shorting the stocks), and selling covered calls or out of the money credit spreads. During bull markets owning stocks and calls on underpriced stocks should increase the value of the portfolio. Bear markets should benefit positions in your portfolio that are either short overpriced companies or own puts on the overpriced stock. Income may be generated by selling covered calls or credit spreads during a neutral market. Please note that I have made extensive use of the words "should" and "may". Please do not invest any money that you can not afford to lose. Everyone has a different tolerance for risk. It is important that you do your own homework and take responsibility for any decisions that you make. When investing, it doesn't take very long to have an educational experience with an outcome other than expected. I plan on setting up a page or pages on my website describing these experiences so that others may learn from the tuition that I paid to Mr. Market. I strongly recommend that investors maintain a trading journal so that they may analyze successful and educational trades (i.e. trades that you have lost money on). This website will be exploring various investment methodologies with the emphasis on building a portfolio that can consistently increase in value regardless of the direction of the overall market. I consider myself a webservant to my visitors so please feel free to use the Contact Us form to submit any suggestions to improve the content on this website. Please note that the website is being redesigned. Please feel free to visit often. Thanks for visiting, Jonathan Your webservant |