Balanced Portfolios

If you have ever read you HR benefits package at your job you may have been confused by what the names of all of mutual funds meant. Value, growth, balanced, index, active, managed…. Well a Balanced portfolio or mutual fund just means that the goal is to get a good return without ever taking on too much risk. For example, in 2008 stocks dropped about 60% in value. That account that you had $100,000 in all of the sudden had $40,000 in it if you were invested only in stocks. However, if you owned some stocks, some bonds, and some gold your account may have only dropped to say $80,000.

Balanced portfolios are great for people who can’t stand to see their account drop very far. I actually run some balanced accounts for myself where I pick some stocks, I trade some derivatives, but I balance those risks out with bonds, gold, and commodities – wheat, corn, oil, steel etc.

In the first 120 days of publishing this strategy it has returned 2.28% more than taking on the risk of holding 100% stocks. That is excellent! The balance of this fund also means that I won’t lose any sleep about the next market crash.

I publish the results online for people to see. I even allow you to link your brokerage account to the signals so you can make the same trades if you wish. If you want to know more, just ask a question or check out the strategy here.

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