10-23-2014, 09:24 AM
(10-23-2014, 08:33 AM)twil Wrote: Now to my question. I've been looking at XOM/CVX for my next purchase since oil is down as of late. Would that be to much exposure for my young portfolio in oil?
In my opinion, you will be building and adding to this portfolio over many years, so as you do there will be different sectors that rise and fall with the world economy. If a sector is giving you a sale on a stock and you like the company, I wouldn't be concerned about being too exposed at this point.
You will have another $1000 next month, and the next month, and the next month...you will add diversification as you go. If interest rates take a jump and utility and REIT stocks go on sale you can overweight them for a period. If we have a tough winter and consumer stocks go on sale you can pick them up cheap and overweight them for a period.
If you were retiring tomorrow and needed the dividend income to live off of, my answer might be different, but with new money coming in monthly and many more purchases ahead of you, buy what deals the market is giving you now and worry about diversification later.