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Reducing the risk in a portfolio is important.  So is maintaining expected returns.  By choosing investments that offset each other, that is they react differently to the same market conditions, you can significantly increase your comfort with your investments knowing you are reducing volatility in your portfolio.

This chart conceptually illustrates what can happen when two different investments are combined in the appropriate manner.  Each investment may be risky on its own, but combined the risk is substantially reduced.

 

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Please Note: 
This website is intended for informational purposes only and is not intended to provide financial and/or insurance related advise.  Please contact Angela Knight van Schaayk, Associate prior to making any decisions based on information obtained from this site.