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WikiJo
Lv 6
WikiJo asked in Business & FinanceInvesting · 1 decade ago

Investments with low beta to the S&P 500 ?

What do you use to balance your portfolio? Gold? Bonds? Real Estate? What do you like to balance the volatility of your stocks with ?

4 Answers

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  • 1 decade ago
    Favorite Answer

    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.

  • 1 decade ago

    Permanent Portfolio by placing 25% to stocks,bonds,gold and cash respectively. Stocks with high volatility , bonds with zero coupon.

  • Anonymous
    1 decade ago

    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.

  • 8 years ago

    Hey I saw you replied with a good answer on someone question.

    Answer mine please ?

    http://answers.yahoo.com/question/index?qid=201311...

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