Balancing Your Portfolio (Part 2): What Boating and Correlation Have in Common

Scott Pulsifer, CFA, CFP®, Financial Life Planner and Managing Partner of Junto Wealth, uses a boating metaphor to explain the relationship between stocks and bonds. Often people think a mix of stocks and bonds can create balance in a portfolio, but they don’t realize their correlation is far from steady. It’s important to consider incorporating different types of investments to create a more balanced portfolio that can withstand shifting conditions.