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Show Wednesday, July 12, 2000 B-8 The Parfr Record Talking Shop O Ways to diversify diver-sify your portfolio by John Jaicks RECORD GUEST WRITER Diversification is an investment invest-ment strategy that helps you avoid putting all your eggs in one basket. When you allocate your investment dollars among many investments, you potentially reduce the risk of any single investment, and help to optimize voi.r overall return given your risk tolerance. There are a number of ways vou can diversify when deciding which stocks are best suited for you. Consider the following possibilities: possi-bilities: Diversify among industry sectors. sec-tors. A sector is an area of the cconoim composed of industries that have certain characteristics m common. All industries in a given sector tend to react simiiar-iv simiiar-iv to trends in the overall econo-mv. econo-mv. In general, you should include stocks from a number of sectors, but dedicate a greater dollar amount to the sectors that are currently in favor. Diversify by risk level. There are main categories of stocks Wheels of (good) fortune Olympic gold medalist Picabo Street takes delivery deliv-ery of her 2000 Chevrolet Tahoe from Mike Hale, president of Mike Hale Chevrolet. The vehicle manufacturer manu-facturer has been partnered with the U.S. Ski and Snowboard Team and athletes like Street since 1995, and is the largest corporate sponsor for tha team. COURTESY PHOTO fcj Large Selection to choose .-... from f ' 1-800-RAINBOW Come and visit our spectacular In-door showroom o DRAPER 57 EAST 1 2675 SO. (801 ) 523-2277 M-T: 10-8 F-Sat: 10-6 with different degrees of volatili-tv. volatili-tv. A well-diversified portfolio may include stocks from a number num-ber of risk levels, since lower-risk stocks are like to offer greater portfolio stability and higher-risk stocks tend to provide higher potential rewards. As you near retirement age. you may wish to adjust vour portfolio to reduce risk. Of course, vour risk toler Retailers report poor June sales It seems that soaring gas prices and some unseasonably cool weather dampened Americans' desire to shop in June, leaving many of the nation's biggest retailers retail-ers with weaker-than-expected sales for the fourth consecutive month. The sluggish sales figures, released ThursJ.iv in Washington. I - PLAY SYSTEMS, Ah " . ' - i-- ance will vary with your individual individ-ual situation. Diversify globally. Foreign stock markets provide an extra degree of diversification, which has been shown to reduce portfolio portfo-lio volatility and enhance returns over time. Keep in mind that past performance does not guarantee future results, and overseas investments are subject to certain risks beyond those applying to domestic investments such as political, economic and currency exchange risks. In the end. the specific way you choose to diversify your portfolio will depend upon your individual investment objectives and risk tolerance. Your financial adviser can help you determine which methods are best for your own individual financial situation. hinted at some slowing in consumer con-sumer spending, resulting from the Federal Reserve's six interest-rate increases over the past year. The slowing June sales forced a number of retailers to rev ise their expectations for second-quarter earnings. Gap Inc. warned Thursday that its quarterly results would miss anaivsts' forecasts. - t INC. Professional Installation Available " A " . v . .. jjl BtifMP "s . E 0 John Jaicks is a financial advisor advi-sor with the Morgan Stanley Dean Witter Reynolds office in Park City. This article does not constitute tax advice. Investors should con-stilt con-stilt their personal tax advisers before making any tax-related investment decisions. In formation and data in this article arti-cle were obtained from sources considered reliable. Their accuracy accu-racy or completeness is not guaranteed, guar-anteed, and the giving o f same is not to be deemed a solicitation on Morgan Stanley Dean Winer's part with respect to the purchase or sale of securities or commodities. commodi-ties. Readers with questions can send their letters to John Jaicks, Columnist; c'o The Park Record. P.O. Box 368S. Park Citv. VT S4060. Sales started off slow in early June and never picked up. with the exception of some buying around the Father's Day holiday. Rising gas prices have put pressure pres-sure on consumers, especially those living in the Midwest. The average cost of a gallon of regular unleaded gasoline is up nearly 70 cents from a year ago. Also factoring into the weak June sales was cooler-than-normal weather in parts of the country, which hurt demand for summer clothing like T-shirts and shorts. Government analysts said that spending was also somewhat tempered tem-pered by the six interest-rate hikes over the past year, which have started to slow overall economic growth as borrowing costs are increased. It is still not clear how much of an effect the Fed s action is having on consumers' buying habits, th ugh there are some signs that they're cutting down on purchases. pur-chases. For the second straight month, some less-seasonal stores such as the discount chains Kmart Corp. and Target Corp. that sell an array of goods and don't rely heavily on clothing reported disappointing numbers. Even discounter Wal-Mart Stores Inc.. which has outperformed outper-formed much of the retail marketplace market-place in recent years, turned in more modest numbers than expected. expect-ed. Wal-Mart said its sales from stores open at least a year rose 4.8 percent in June compared with a year ago. while total sales rose 2uv -percent from year-aao levels.!) l -,i: Drop off donations it The Pirk Record Newspaper lft70 Bonaiua Drive or mid to : I he Tark RctorJ Ann: Sim' i's rlv fltla Bonk Drtix PO. Box 3688 Park City. Ulah 8-0M) L Read The Park Prpgrarn Bats Poinls30swn Caps LnJes Bank One SOyrFix 8.000 0 5 15 yr Fix 7.750o 0 5. 1 yr ARM 6 875 0 10 2 6 T-B.ll Chase Manhattan Mortgage 30 yr Fix 8.250 0 5 Home Equity 9 500 0 5 71 Jumbo ARM 8 250 0 5 2 5 T-Bill Countrywide Funding 30yrFix 8.500 0 10 15yrFix 8.125 0 5 3.1 yr ARM 8 125 0 10 2 6 T-Bill Crossland Mortgage 30yrFix 8.125 0 5 15yrFix 7.750 0 10 71JumboARM 7.750 0 10 16 T-Bill First Colony Mortgage 30yrFix 8 125 0 5 15 yr Fix 7 875 0 10 30 yr. FHAVA 8 250 0 3 First Western Mortgage 30yrFix 7.750 0 5 15 yr Fix 7.500 0 5 1 yrARM 6 500 0 10 T-BII Key Mortgage 30yrFix 8 375 0 5 30 yr Jumbo 8 625 0 5 5 yr Balloon 7 875 0 10 2'6 T-Bill North American Mortgage 30yrF,x 8 000 0 5 15 yr Fix 7.750 0 5 5.1 ARM 7.875 0 5 2 6 T-Bill Washington Mutual 30yrFix 8 000 1 000 3 1 5 yr Fix 7 625 0 875 3 1 yrARM 7.375 1000 3 1'5 T-Bill Zions Mortgage 30yrFix 8 375 0 5 15 yr Fix 7.875 0 5 7,1 yrARM 7 625 0 10 2 6 T-Bill The Utah Mortgage Pulse includes up-to-date information on home loan rates charged by Salt Lake City area lenders The information was accurate on Monday. July 10th but is subject to change without notice. Closing points: One point equals 1 percent of the loan amount Most lenders also require pnvate mortgage insurance with down payments of less than 20 percent. per-cent. Also, most lenders charge loan processing fees up to S300, credit and appraisal fees up to $400. origination fees of 1 percent along with other closing costs. Index: T-Bill Yield on 1yr T-Bill. COFI Cost of Funds Index. MTA12-Month Treasury Average Index. Libor London InterBank Offered Rate. Source: Mountain Express Mortgage (435) 647-3700. The" PaikRecoixL Celebrates The New Summit County Library We'd like to thank Dori Pratt, Brent, Bobby & Cherie Hood, Marsha French and Denise Deleeuw for their generous donations to the 'Show Us The Tides" Book Drive. Thank You! Is For more information, read your local Park Record Newspaper, or contact Julie Bcrnhard, Park Record, 649-5728. Summit County Nothin' good for Dinner? Eat Out Records Restaurant selection of local establishments. .. r-. v The "Show Us The Titles" Book Drive ends August 31, 2000. M Guide for a The PaikRerani PARK CITY, UTAH rainbowplay.com |