Why Silicon Valley Capital Partners prefers a balanced strategy
Risks that face investors today can be categorized as sector, industry or company risk. These risks can also be much broader and include investment types like stocks, bonds, and real estate. By allocating a balanced portfolio intelligently, known risks can be contained or simply avoided.

From 1972 through 2003, a balanced portfolio constructed with stocks, bonds and real estate (REITs) provided attractive results to investors, including growth, diversification and reduced volatility. Table 3 from left to right illustrates that by adding real estate holdings to a stock and bond portfolio, the annualized returns increased while risk was reduced.

Balanced portfolios typically have less risk because stocks, bonds and real estate holdings have negatively correlated characteristics. Table 4 illustrates the investment characteristics of stocks, bonds and real estate during a market correction from 1999 through 2002. A balanced strategy reduces the potential for principle loss while providing attractive long term growth opportunities.

Holdings subject to change. Percentages may be rounded. Source: Stocks—Standard & Poor’s 500®, which is an unmanaged group of securities and considered to be representative of the stock market in general; Bonds—20-year U.S. Government Bond; Treasury Bills—30-day U.S. Treasury Bill; REITs—National Association of Real Estate Investment Trusts® (NAREIT) Equity REIT Index.