Everyone has heard the old adage…”don’t put all your eggs in one basket”. The truth is that many Americans are inadvertently putting the majority of their investments in one “financial basket”. To create true diversification, investors must be sure that they are spreading risk across many sectors of the markets…not just assuming that the mutual fund manager is doing it for them. Although this list is not comprehensive, here are some examples of what it means to be truly diversified: STOCKSSmall, Mid or Large CapGrowth, Value or DividendDomestic or ForeignDeveloped or Emerging MarketsSpecific Industry Sectors such as:Real Estate, Construction, Commodities, Technology, etc. BONDS Government & Treasury Municipal Investment-grade Corporate High Yield Foreign CASHSavings, CD’s and Money MarketsTrue diversification also means insuring against “overlap”. Overlap occurs when an investor owns several Mutual Funds or ETFs (Exchange Traded Funds) that have similar holdings of the same investment. Often times, this happens inadvertently and the investor has no idea that they are actually exposing themselves to a much higher level or risk.At Wealth Watch Advisors, we create portfolios with true diversification in mind. Our goal is to assist our clients in building wealth safely. By constant monitoring of portfolios, through cutting edge technology, we can help prevent additional risks associated with diversification and overlap.