Balanced investing


A balanced investing is an investing style where the balance between stocks and bond holdings are held equally at 50%. If one security group accounted for over 50% in weight on the portfolio, the excess value would be sold to bring it back down to 50%. For example, if the total value of stocks held is $10,000 and another $10,000 in bonds, once the value of stocks held goes up to $15,000, $5,000 worth of shares would be sold. The proceeds will then be used to buy additional bonds to set the balance back to 50%.

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