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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
- Glenn_11Lv 41 decade agoFavorite 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.
- Anonymous1 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 ?