In addition, investors must periodically balance their portfolios to accommodate fluctuating markets. Shifting percentages dedicated to each asset class ensures that the portfolio becomes neither too conservative nor too aggressive. For the investor who truly wants to minimize risk, short-term investments such as money market accounts and Certificates of Deposit are typically the safest investments. Although their profits are typically small, they usually offer insured principal.
George Divel is President of Investments at Global Wealth Advisors. Securities and advisory services offered through Capitol Securities Management, Inc. Member FINRA & SIPC. A registered Broker/Dealer and Registered Investment Advisor.