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Power Play: Smartest thing to do with your portfolio

Traders work the floor of the New York Stock Exchange.
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Traders work the floor of the New York Stock Exchange.

Overseas markets are outperforming the U.S. this year, leaving many investors to wonder if the good times are over.

Lee Partridge, chief investment officer at Salient Partners, says don't panic. You can still make money, even as we enter a sixth year of a bull market.

"The smartest thing [an] equity-centric investor can do is diversify their portfolio with strategies that can offset equity market volatility and/or losses," Partridge told CNBC's "Power Lunch" on Friday.

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However, diversification is not just buying bonds. Partridge is looking at technology, health care and emerging markets.

"We expect many emerging equity markets to generate double digit annualized returns over the next ten years, outpacing domestic stocks by 5-8 percent on an annualized basis. Similarly, both hard currency and locally denominated debt look particularly attractive versus developed market alternatives," Partridge said.

Emerging markets are up nine percent year-to-date, while the Dow is only up one percent.