A balanced portfolio is a strategic choice for investors seeking to optimize their risk and return. It typically includes a mix of stocks and cash, with the allocation tailored to an individual's risk tolerance and investment goals. For instance, a common balanced portfolio might consist of 50% stocks and 50% cash for liquidity purposes. This approach allows for participation in market growth through stocks, while cash provide stability during market downturns. Regular rebalancing is crucial to maintain the desired asset allocation over time. Back tested for since 2014...

Let's say you buy a stock (hoping to win) but it goes down. You lose money. ​​But what if you hedged? How to hedge? You want to buy a small put with 3-5% of your capital with an expiry that's around 1 month away from today. (More often than not, you lose money immediately after you enter)​ The stock market moves against you and your put prints money. With a short-term put, it is quite possible to make 100% to 300% in a month. You take the profit and then you can buy back more shares of your favorite company.​ Now you are protected. Cheers, Eric ----- Eric Seto Chartered Professional Accountant (CPA) Chartered Investment Manager (CIM) Founder of 5MinInvesting.com Free webinar - how to get 30%: https://5mininvesting.com/free-case-study/ In March, my goal is to help 5 people without a financial background to master investing. Investing Accelerator is designed for people without a financial background. The goal is to achieve 30% return per year. In the first phase, you will learn long term investing and targeting 30% for tax free compound growth. This will help accelerate your overall wealth. In the second phase, you will learn monthly passive income to provide a more predictable cash flow (target 30% per year) which can cover your expenses. This will help accelerate your retirement goals. If you are interested, then let's hop on a call to see if you can benefit from the strategies in Investing Accelerator and get 30% per year. During the call, we will map out exactly how you can achieve 30%, what you are lacking, how you can improve. If you have any questions about the program, you can ask during the call as well. Schedule a call here: https://bit.ly/48mJlgR Remember to go to the Classroom tab for additional investing resources.