Asset allocation involves dividing an investment portfolio among different asset categories, such as stocks, bonds, alternative assets, and cash. The particular asset allocation that works best for an investor at any given point will depend largely on the investor’s time horizon and risk tolerate.
By investing in a mix of different asset classes which tend to have investment returns that rise and fall under different market conditions (that is, which are non-correlated to each other) within a portfolio, an investor can protect against significant losses. In other words, market conditions that cause one asset category to do well often cause another asset category to have average or poor returns. By investing in more than one asset category, you’ll reduce the risk that you’ll lose money and your portfolio’s overall investment returns will have a smoother ride.
Jonathan Friedland, a senior partner with Sugar Felsenthal Grais & Helsinger, LLP, views his job simply: to make money for clients whenever possible and to protect their interests at every… Read More
Arthur is an industry veteran with more than 20 years’ experience working with high-net-worth clients. He has an extensive background in wealth management with particular expertise in portfolio management. Before… Read More
Randy Hardy is a Vice-President and Principal of Clune & Associates – a boutique private wealth management firm. Besides working directly with clients, Randy also handles CIO duties for the… Read More