One of the most common questions investors ask is, "How do I determine the right asset allocation?" Asset allocation is essential to building a balanced portfolio, and the key factors to consider are your ability, willingness, and need to take on risk. In this post, we’ll break down these three components to help you better understand how to structure your portfolio for long-term success.
Understanding diversification is the first step in building a strong portfolio. Are you ready to weather the storm?
The overarching premise of getting a return on investing in a stock in the stock market is that you get rewarded for taking the risk to invest in a company with an uncertain future. You can’t get a return without risk. That is the price of admission for being an investor.
Even if you manage to land a big winner once or twice, our research has found that this luck is unlikely to repeat throughout a lifetime of investing.
The market, with its immense power, ensures that stock and bond prices accurately reflect their current value. As of now, there is no indication that AI will significantly impact the way people perceive stock prices in the near future.
The end of a long bear market is a good opportunity to remind investors that history supports an expectation of positive returns over the long term. Sticking with your plan and remaining in the market may help put you in the best position to capture the recovery following market downturns.