Easy Ways to Manage Risk
Don't overthink it.
Earlier this year, U.S. stocks entered their 11th year of a bull market that began in March 2009, making it one of the longest of the past century. A decade into a generally benign market environment, it can be easy to forget that investing is risky. It always has been, and always will be. But risk can be managed. Here, I will share some simple ways to cut back on the amount of risk in your investment portfolio.
The Stock-Bond Mix
Bonds are far less risky than stocks. But deciding how much of each to own depends on a host of variables--most notably your capacity and willingness to bear the risk of stocks.
Daniel Sotiroff has a position in the following securities mentioned above: VEA. Find out about Morningstar’s editorial policies.