Asset allocation is an investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to individual goals.
Asset allocation is a strategy used by investors to distribute their investments across various asset classes, such as stocks, bonds, and cash. The goal is to optimize the balance between risk and return based on the investor's risk tolerance, time horizon, and investment objectives.
There are several approaches to asset allocation, including strategic asset allocation, which is a long-term approach, and tactical asset allocation, which allows for short-term adjustments based on market conditions.
“The key to making money in stocks is not to get scared out of them.” - Peter Lynch
By diversifying across different asset classes, investors can reduce the impact of market volatility on their overall portfolio.
