This episode is about how
to diversify your investments for lower risk and higher return. The
issues covered include:
- The problems with a simple "buy and hold" approach, whereby you
invest all your money in your one favorite asset (be that stocks,
gold or anything else).
- The problems with the "market timing" approach to investing and
why it doesn't work.
- The benefits of diversifying your portfolio
- How to properly diversify your portfolio by using different
asset classes, rather than just different securities.
- How to use rebalancing bands to harvest volatility, increase
your return and reduce risk.
You can get more information about the concept of the permanent
portfolio discussed in this episode in Harry Browne's book
" and in many of the previous Voluntary Life podcast
episodes on investing
As always regarding investment, do your own research. I am not an
advisor and this isn't advice of any kind, it's just my own
opinions based on my experience.