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I would NEVER do that
Between sep 15 and October 7 be fully invested
33% qqq
33% spy
and 33% mdy
this 3 alone will give you a total of 1000 shares diversification
Ben
----- Original Message -----
From: "charles meyer" <chmeyer@xxxxxxxx>
To: "REAL TRADERS" <realtraders@xxxxxxxxxxxxxxx>
Sent: Saturday, July 20, 2002 7:25 PM
Subject: [RT] GEN: STOCK DIVERSIFICATION--THE 3% SOLUTION
> Group-
>
> I've heard from a couple of sources that the optimal method of
> diversification
> in a stock portfolio is to have no more than 3% in any single issue. To
be
> fully invested would there require owning a total of 33 individual stocks.
> Of
> course the reason cited is that anything can hapen in the way of earnings
> surprises to individual issues; but with a total of 33; any price shocks
> will
> not adversely affect the total portfolio performance.
>
> I'm wondering if there is any type of statistical data; or concept; to
back
> up
> the idea of how the number 33 was arrived at.
>
> Thanks for any comments.
>
> chas
>
>
>
>
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