Don’t be afraid to change your asset allocation
Asset allocation is a time-tested strategy that can help take the guesswork out of choosing investments for your portfolio. Instead of putting all your eggs in one basket, you spread your eggs (dollars) among a variety of baskets (stocks, bonds and cash). The baskets can be further divided within each type of investment.
Although many investors understand that they should invest in a variety of securities, they often stumble when it’s time to choose an asset allocation that’s right for them. The allocation that you choose should be based on how much risk you are willing to assume, why you are investing and when you will need to tap your investments.