Interval Workouts Enhance Portfolio Risk

 
 

Five down, five to go. Half-way done with the workout.

Interval workouts are supposed to be hard work, and they are important.

They get the runner moving faster, often more efficiently, even if just for a short time and in small doses. 10% of the total weekly volume dedicated to speed work should do the trick.

Lots of marathoners never do any kind of speed work, simply building their mileage. They just want to get to the finish line. That’s fine, but to finish strong, one needs to add regular speed work. And even if the goal is just to complete the distance, the speed work helps.

It trains the body in a different way than the constant plodding of most recreational runners.

But don’t overdo it. That could lead to injury.

Just like the runner needs a little speed work to finish strong, long-run investors need some risky assets mixed into their portfolio of blue-chip stocks, bonds and cash.

Ralph Bender here for Enduring Wealth Advisors

In a well-diversified portfolio, it’s the risky assets that make the most gains when the market is moving aggressively. And lose the most when it goes down.

But that’s ok, if the portfolio is managed. Periodic rebalancing trims the gains and buys the relative dips.

The right amount of risk can help you finish strong.

Give us a call if your portfolio could use a risk-adjustment!

Gotta Run!

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