Jim Cramer has a new strategy for diversification. He opened up his lesson book to help investors craft a portfolio filled with stock that will shield investors in any market, while producing maximum benefit.
Frankly, selecting stocks from each sector just won't cut it anymore.
First on his list were speculation stocks. Cramer always talks about specs, but what exactly does he mean?
These stocks present higher risk, but also offer higher reward. Something to keep you interested!
When compared with the standard fare in Cramer's other strategy — think dividend yields and growth stocks — a high-risk stock hardly seems to make sense. Speculation always seems to be that dirty little word investors are told to avoid.
"Not only is it okay for you to own those tempting, risky, broken-seeming stocks that trade in the single digits, it's a necessity, as long as you follow my rules and speculate wisely," the "Mad Money" host said.