While your portfolio may appear to be wrapped up tightly in a well-diversified safety net, there may be a hidden risk lurking within. In the video below, Motley Fool analyst Blake Bos uses the recent health scare in China at Yum! Brand's (NYSE:YUM) KFC and McDonald's (NYSE:MCD) to expose this hidden risk for investors. Even such companies as Starbucks (NASDAQ:SBUX) aren't safe, but if you plan accordingly, you can minimize the impact of this unsystematic risk on your portfolio.
Blake Bos has no positions in the stocks mentioned above. The Motley Fool owns shares of McDonald's, PepsiCo, and Starbucks and has the following options: short JAN 2013 $47.00 puts on Starbucks. Motley Fool newsletter services recommend Coca-Cola, McDonald's, PepsiCo, and Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.