About Strategic Asset Allocation
When it comes to investment, trusting our instincts doesn’t help.
Without a strategic approach to investment, we are likely to make entirely the wrong decisions about what to do with our money:
- Increasing an investment on the back of good performance increases risk.
- Attempting to predict market movements and over-react to sentiment increases expences and eats into profits.
- Following trends and looking for popular investments ignores the academic evidence about how to invest successfully.
- Simply selling our worst performing investments without structured, regular review will give an unbalanced and unstructured portfolio.
How can we do things better?
By using strategic asset allocation
