Divide your investments ...

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Divide your investments among many places, for you do not know what risks might lie ahead. -Ecclesiastes 11:2

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There is an investment strategy called asset allocation that somewhat mirrors Solomon's sentiments in this verse. The idea is to balance your investments across stocks, bonds and cash. If done correctly you will minimize your exposure to risk when one sector of the market goes down. If you counter higher risk growth stocks with value oriented ones or bonds you may not see large swings in your portfolio when bad new hits Wall Street.

In a sense investing is a metaphor for life. People risk much when they apply a rigid black and white investment strategy - it is also risky when we employ such narrow strategies to other parts of our lives. Yet people who find a balance to life are often able to ride the waves of change in ways similar to the investor who has not put all of their proverbial eggs in one basket. Yet finding diversity on Main Street is often harder than finding it on Wall Street.

Help us Lord to find balance and live lives that are pleasing to you.

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