What do you use to balance your portfolio? Gold? Bonds? Real Estate? What do you like to balance the volatility of your stocks with ?
2007-01-06 05:24:14 · 4 answers · asked by WikiJo 6 in Business & Finance ➔ Investing
A good way to build a balanced portfolio is to use Modern Portfolio Theory.
A diversified portfolio will decrease risk and increase returns over the long run.
A high quality short-term bond fund is a good investment to balance the volatility of an S&P 500 fund. Long term bonds tend to move in the same direction as stocks but short term bonds have a low correlation to stock prices.
As your portfolio grows you can add a little exposure to gold, real estate, emerging markets, and small cap US stocks to add even more diversification to your portfolio.
2007-01-06 06:47:17 · answer #1 · answered by Glenn_11 4 · 1⤊ 0⤋
Permanent Portfolio by placing 25% to stocks,bonds,gold and cash respectively. Stocks with high volatility , bonds with zero coupon.
2007-01-06 14:09:20 · answer #2 · answered by Dang 3 · 1⤊ 1⤋
25% t-bills, 25% municiple bonds, 25% foreign stocks, the rest U S stocks of 15% small cap, 15% mid cap, 25% value, and the rest large cap.
2007-01-06 17:14:56 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Hey I saw you replied with a good answer on someone question.
Answer mine please ?
http://answers.yahoo.com/question/index?qid=20131115192950AAR48Sd
2013-11-15 23:38:20 · answer #4 · answered by Joe 1 · 0⤊ 0⤋