Diversifying investment risk with bonds

The key to successful investing is to minimize that risk while maintaining an attractive return on the investments. One of the most effective ways to minimize the risk is to diversify. By diversifying the investments among stocks, bonds and money market securities, can lower the overall investment risk. Diversification can help even out price swings during the normal ups and downs of the stock market.
Many investors, understandably concerned about the future of the equity markets, are looking at alternative investment vehicles. For those who desire to increase the diversification in their portfolio in the hope of reducing their risk, fixed-income securities may be the answer mentions the article. All securities behave differently from one another, going up and down in separate cycles and to varying degrees. An individual stock is affected by a combination of different elements, including the overall stock market, health of the industry the company does business in, and the co...