   
|
|
Defensive Investment Strategy
|
| FYI - For 2011, Dow up, Dogs of the Dow up more (double digits) |
| |
Defensive investment strategy is an investment approach to allocating a portfolio as to reduce the risk. In other words, a defensive investment strategy outlines a way to preserve principal and minimize volatility associated with the ups and downs of the market. Employing a defensive investment strategy necessitates investing primarily in bonds and other highly liquid investments, such as Treasury Bills and money market funds. A defensive investment strategy, however, does not have to be limited to bonds and cash equivalents. Thus, a defensive investment strategy may include various conservative securities known as defensive stocks. In order to qualify for a defensive investment strategy these stocks must be established and remain stable over time. Committing to a defensive investment strategy also implies that a low risk, defensive portfolio will bear a marginal return.
Rate this defensive investment strategy definition...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: annual return, inflation, deferred tax, margin rate, open position, command economy, diluted share, current ratio, Key Rate Duration, in escrow, labor relations, option premium, cancelled check, deferred revenue, FICO score, 1035 exchange, stock split, LIBOR, average price per share, class C shares, wholly-owned subsidiary, stock market close, irrevocable trust, liquidity ratio, ex-dividend date, balance sheet, limit order, risk management, ex-dividend, Zero Cost Collar, quality assurance, 1031 exchange, FTSE, covered put, implied volatility, dividends payable, real GDP, APR, debt service coverage, 144a, minority interest, phantom income, 401a, VIX, required rate of return, per diem, EBITDA, reverse mortgage, retained earnings
|
|
| |