1. Money

Asset Allocation Is Three-Legged Stool

By December 11, 2012

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If you devote all of your time to picking stocks, you may be at risk when you belatedly decide to add bonds and cash to your portfolio. Stocks, bonds and cash make up the three-legged asset allocation stool. You need to be right on all three.

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Comments
December 18, 2012 at 2:32 am
(1) daveM says:

Balance is needed in every area of life, including investments. No matter how well we are allocating our resources, things have to be rebalanced often. Investing is not passive, we have to manage and assess each position.

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