As any good investor knows, diversity is the key to making your investments reliable. Whether you are mostly into stocks, bonds, mutual funds, etc. is not really an issue. Almost every investor has a medium that they prefer. Many prefer the world of the stock market, while others would much rather spend all of their money on bonds. But, the wise investor also knows that diversity is the best when it comes to making money on the long run. Why? Well, mostly because no single market is that reliable AND profitable at the same time.

For example, on one hand you have stocks. These have a substantial return when you choose the right companies to invest in, but they are also volatile to a certain extent. You could wake up tomorrow and have your stocks be worth less than you paid for them. But, they could rally back by the end of the day, and be worth twice as much by the time the markets close! Now, this is an extreme example, but one to think about.

U.S. Government bonds, or any bonds for that matter, are a lot more stable but they yield less of a return for your money. U.S. Government bonds, especially treasury bonds, are of interest to investors because they are even more stable than other types of bonds. And while treasury bonds might yield less in profits than even other bonds, they make up for it by being one of the most stable investments you can make.

The key to a successful portfolio lies in buying the right number of both. Buy stocks, but offset the risk by keeping some bonds in the mix as well. Like I said, bonds might not be your preferred choice, but there is no doubt as to their stability.