What is the balanced investment method of stock and debt?

For beginners, investing is not a simple matter, especially investing in stocks. So, is there a more practical investment strategy to make investment easier? Yes, this method is the balanced investment method of stock and debt. Here is a brief introduction.

What is the balanced investment method of stock and debt?

The balanced investment method of stock and bond takes advantage of the seesaw effect of stock market and bond market. In many cases (not absolutely), the stock market will rise, the bond market will fall, the stock market will fall and the bond market will rise. So we will invest half of the shares and bonds and balance them regularly. If the stock market rises, we will sell some and buy bonds, so that the market value ratio of the two types of assets will return to 1: 1.

How to operate the balanced investment method of stock and debt

First, buy half of the money to be invested in stocks and half in bonds, and then balance the assets once a year (or every six months), so that the ratio of stock to bond assets will be restored to 1: 1.

Equity-liability balance investment method is a long-term investment strategy, which needs to be held for a long time and then rebalanced. In addition, it is not convenient to use short-term money or too little money, otherwise it is not convenient to rebalance investment.

Generally speaking, when individual investors use the balanced investment method of stock and debt, they should at least ensure that the money they invest will not be used for three to five years. If they suddenly need to use the money for emergency, they will disrupt the original investment opportunities and give up halfway, which will not pay off.

The advantage of the balanced investment method of stock and debt is that it automatically solves the problem of when to buy and when to sell. As long as the stock market has not reached the stage of fanatical overvaluation, it can be allocated at any time to achieve a regular balance. If the stock market rises too much, it will be sold, and if it rises too much, it will be sold to make up the stock.

Ok, I will share the law of rebalancing investment between stocks and debts here, hoping to help everyone. Warm reminder, the stock market is risky and investment needs to be cautious.