Investor Education: Asset Allocation

Asset Allocation is your master plan for building and managing your investment portfolio. You decide how much to invest in different investment categories. Maybe you buy some stocks, a few bonds, a lot of cash or cash equivalents. And -- this is key -- how much of each you choose has a major impact on your investment return. Why? All asset classes do not behave equally. A market that produces strong stocks may be a blow to bonds. If you allocated your investments across the board, your slumping fruit stock may be offset by your chip bonds going gangbusters. Step one: Choose which asset classes you want in your portfolio. Then: Consider what percentage of your portfolio you want to allocate to each of these asset classes. And that concludes Asset Allocation 101.

Category:

Howto & Style

Tags:

• asset
• allocation
• online
• trading
• brokerage
• firm

[greendodgy]

Wall-E? ;)

[markbradleyvideos]

This is very interesting. Thanks for your help. I will be checking some of your videos. I believe I can have more good videos from you.

[ya7ya666]

an introduction to asset allocation shouldn't be as simple as this... actually this is a misleading and may be a harmful introduction to the concept of asset allocation models and portfolio theory. I expect more from WallStreet e