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Both cheap value stocks and more glamorous growth stocks can work well in a portfolio - if done right.

Portfolio theory, as used by most financial planners, recommends that you diversify with a balance of stocks and bonds and cash that's suitable to your risk tolerance.

Owning a variety of asset classes means that some part of your portfolio will be doing well when the cyclical turmoil arises. A broadly diversified portfolio includes large capitalization stocks, small cap, emerging markets, fixed income, real estate and commodities.

You've always got to think about having some fixed income in your portfolio as well as equities.

If the investor doesn't have enough time and skill to investigate individual stocks or enough money to diversify a portfolio, the right thing to do is to invest in exchange-traded funds that give you exposure to asset classes. It does make sense for the individual investor to think in terms of holding individual asset classes.

You want less of the annoying nonsense that interferes with your portfolios and more of the significant data that allow you to become a less distracted, more purposeful investor.

Owning equities is an essential part of anyone's portfolio. You just can't ignore it over time. It's going to add the real pop to anyone's overall performance.

The beauty of diversification is it's about as close as you can get to a free lunch in investing.

When it comes to investing, there is no such thing as a one-size-fits-all portfolio.

I think it's a mistake to rely too much on any one economic factor. It's why investors try to spread their portfolio round.