You know that the United States has bombed Iran, and markets are reacting to the potential for war and disruptions to the supply of oil coming out of the Persian Gulf. In times of economic and geopolitical turmoil, it’s not bad to reassess your tolerance for risk and your portfolio allocation. Are you willing to ride a lot of volatility? Or maybe you want to own assets with a more stable history. While some periodicals may have declared the death of the balanced fund, in fact, such a strategy has proven itself over the long haul.
You can see an example of the balanced portfolio strategy’s results in the chart below. The Vanguard Wellesley Fund has suffered eight years of negative performance since 1971.
Action Line: While tensions in the world are heating up, it’s a good time to discuss your risk tolerance with your fiduciary. When you want to talk, email me at ejsmith@yoursurvivalguy.com. And click here to subscribe to my free monthly Survive & Thrive letter.
Originally posted on Your Survival Guy.
