Released on = July 19, 2006, 7:21 pm

Press Release Author = Eleven Two Fund Management, Inc.

Industry = Financial

Press Release Summary = The strength of the dollar and falling equities left just
about every asset class down in June 2006. Can we expect this to continue? Is
diversification still the way to invest?

Press Release Body = \"Concerns over inflation and economic growth resulted in
significantly lower equity prices in May. But it wasn\'t just stocks that got
pounded. Virtually every type of asset class ended the month lower, including
commodities, the U.S. Dollar Index, high-yield bonds, gold, and the energy complex.
For the well-diversified investor, this is a worst-case scenario, as a host of
uncorrelated investments all decided to head south at the same time.\" - Saving Grace
for Hedge Funds, Searching for Alpha, the monthly index newsletter for June 2006 by
Ben Warwick.

The above paragraph appeared in the June 2006 edition of Searching for Alpha from
the Investment Adviser Magazine web site. As you can read from the above sentences,
even the well diversified investor did not fare so well in May of 2006. The TDP
finally posted a negative month after having 10 of its last 12 months being
positive, despite the valiant performance efforts of foreign currency in your
portfolio during May! Very few investment strategies have the luxury to focus or
concentrate on performance using a month by month measure. Recently one of my
clients asked me if I was nervous.

My answer is an emphatic no, because I have seen much worse months as well as
quarters while the TDP still finished up nicely for the year. The primary hope that
I have for each year for your truly diversified portfolios is to not have a negative
calendar year. Most investors have no idea how badly negative years hurt long term
performance. However, I know from research, that even a TDP is capable of going down
10% in one year. If at the start of the last two months of 2006 the TDP were
negative.then I would be more concerned that my aspiration of another positive
performance year would not be met. Still, other investment strategies or single
asset classes have multiple consecutive negative years. So again we are left with
the wisdom that true diversification is the best investment strategy for lowered
risk and consistent growth of an investor\'s portfolio. I\'m optimistic that the rest
of this year will prove to be another good one for the TDP as it posts its fifth
consecutive positive year.

When most people work with financial advisers they will need to have at least a 10
year investment time horizon before they should partner because most all of their
money will be put into US and possibly highly correlated foreign stocks. The reason
I say 10 years is that the US stock market has heightened volatility, meaning
tremendous negative years that the investor must be willing to quote \"hang in
there\" during to get back to their original investment or a respectable average
compound annual rate of return. This is not the case for the truly diversified
portfolio; I usually tell my clients that they should have an investment horizon of
at least three years in a worst-case scenario to get back to break even.

There is no other investment strategy that I\'m aware of where the investor can have
the realistic hope of consistent double-digit returns and preservation of capital
and thus more money in the end; than with true diversification.


Web Site = http://www.diversifyyourassets.com

Contact Details = Thomas Cloud, Jr.
885 Woodstock Road #430-390
Roswell , 30075
$$country

770-642-9373
thomas@diversifyyourassets.com
http://www.diversifyyourassets.com