Invest for consistent returns
 Another way to moderate risk is to manage your
investments with the idea of providing as consistent a return
as possible over an extended period of time.
That might mean, for example, keeping some of your capital in
fixed-income investments, such as bonds, during a strong stock
market, which would probably provide a lower return than a portfolio
invested exclusively in stock. But if the picture changes and
the stock market falls, as it does periodically, then having the
bond investments could also stem major losses.
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Thomas J. Dorsey, President and
co-founder of Dorsey, Wright &
Associates 