Asset Allocation

It’s no secret that throughout history common stock has outperformed most financial instruments. If an investor plans A1amuXHCMAAqdR6to have an investment for a long period of time, then their portfolio should be comprised mostly of stocks; however, investors who don’t have this kind of time should diversify their portfolios, i.e. include investments other than the stocks.

For this reason, the concept of “asset allocation” was developed. Asset allocation is an investment portfolio technique that aims to balance risk and create diversification by Continue reading “Asset Allocation”