This is Part 1 of a mini-series on investing.
How you allocate your money into asset classes is said to be the most important decision you will make as an investor. I’m here to tell you that is exactly wrong. We’ll discuss this and how we should be thinking about asset allocation.
Today, we’ll discuss these three things:
- What asset allocation is
- How to do it correctly
- How to avoid a large pitfall
Links referenced:
Vanguard historical allocation returns
Setting the record straight on asset allocation
Determinants of portfolio performance
Does asset allocation policy explain 40, 90, or 100% of performance?
