Asset allocation and Diversification, Wall Street E Online T

Asset allocation means investing in different types of assets — stocks, bonds, cash. Diversification means finding the right mix of investments to cushion your portfolio against market downturns. International investments are getting popular in diversification strategies. But that's not enough. You've gotta keep tweaking. As your portfolio grows, as your goals change, you may need to change that asset allocation. If you want to take less risk, you may exchange some bonds for more cash equivalents. So -- remember the two universal principles of smart investing: Asset Allocation & Diversification.

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• investor
• education
• asset
• allocation
• and
• diversification