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Balanced Investment Strategy

FYI - For 2011, Dow up, Dogs of the Dow up more (double digits)
 

A balanced investment strategy is an investment approach that tries to balance shorter-term income with long-term growth. A balanced investment strategy achieves this by combining different types of investments on the theory that if one sector falters another portion of the portfolio will prosper. A balanced investment strategy often includes stocks (individual stocks as well as shares of funds), bonds, cash (often in a money market account), and sometimes metals and even commodities are included in a balanced investment strategy. A balanced investment strategy does not mean that each disparate element of a portfolio is equally weighted at all times. By spreading out risk a balanced investment strategy is designed to prevent a catastrophic loss of investment funds. A balanced investment strategy is the investment equivalent of the old saying: "Never put all of your eggs in one basket."



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