The right investment strategy is one that helps you accomplish your financial goals while staying true to principles like asset allocation, diversification and rebalancing. Asset allocation is the equivalent of deciding how many of your eggs to put in how many different baskets; diversification is the practice of spreading your investments among and within different asset classes; and rebalancing is making regular adjustments to ensure you’re still on track to meet your desired allocation over time. More info theinvestorscentre.co.uk

Investing strategies are often based on market research that includes studying recent news stories and financial reports, as well as analyst opinions. This research is important for determining an asset’s potential to grow and its risks. Investors with a long-term investment horizon, such as retirement savings, may choose to use a buy-and-hold strategy. This approach is based on the belief that over the long run equity markets deliver an acceptable rate of return despite periods of volatility and decline.

Defensive assets, such as U.S. Treasury bonds, bills and CDs, provide a safe haven against stock market declines but offer minimal growth after accounting for inflation and taxes. International investments and commodities, such as gold, can be more volatile because of currency fluctuations and geopolitical events.

Advanced Investment Strategies for Experienced Investors

While no investing strategy works all the time, research can help you understand and minimize risk and achieve your financial goals. NerdWallet’s ratings of online brokers and robo-advisors consider account fees, minimums, investment choices, mobile app capabilities, customer support and more.