1. Money

Asset Allocation Is Three-Legged Stool

By December 11, 2012

Follow me on:

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.

Follow me on Twitter

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.

Leave a Comment

Line and paragraph breaks are automatic. Some HTML allowed: <a href="" title="">, <b>, <i>, <strike>

©2014 About.com. All rights reserved.