Ever since I left my day job in 2012, I’ve used a form of the dumbbell investing strategy to grow my wealth while protecting against large losses. It’s a framework that’s helped me stay invested during uncertain times—especially when I felt the urge to hoard cash or sit on the sidelines.

If you’re in a situation where you know you should take some risk, but you’re also worried about losing money, the dumbbell investing strategy is worth considering.

What Is the Dumbbell Investing Strategy?

The dumbbell investing strategy involves allocating a roughly equal portion of your investable assets into high-risk, high-reward investments on one end, and low-risk, capital-preserving investments on the other.

If you’re operating with a 50/50 risk split—like I suggest in my post about when to stop taking excess risk—you’re already applying a version of the strategy. It’s especially useful when you’re uncertain about the macroeconomic environment or your personal