May 20, 2008

DYLAN GETS IT RIGHT

I like Dylan Ratigan. I have known him for years, going back to his BBRG TV days. He is likeable and very sharp and very smart. His show is better than MAD MONEY, by far.

Today, he made an obvious but important point on CNBC TV. He stated that many investors do not realize how much exposure they have to energy pricing. He mentioned the highly correlated sectors as Brazil, Russia, Commodities, Solar, Wind as examples of exposure to the energy sector. A very good point.

The important takeaway — Dylan was basically talking about proper asset allocation, a topic one hardly hears about on CNBC. A diversified sector portfolio is critical to long-term success. It is very likely if you own many of these industries and global plays, you are very overweight the energy complex. Scaling back to a proper sector allocation is wise at this point. You will be taking gains without the emotional involvement of decision making.

Thanks Dylan.

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