Consistent discipline in following asset allocation plan is key to investment success from "summary" of All About Asset Allocation, Second Edition by Richard Ferri
To achieve investment success, it is essential to adhere to a consistent discipline in following an asset allocation plan. This principle is the cornerstone of a sound investment strategy, as it helps investors stay focused on their long-term goals and resist the temptation to make impulsive decisions based on short-term market fluctuations. By maintaining a consistent approach to asset allocation, investors can reduce the impact of emotional biases and market timing errors that can derail their investment objectives. Asset allocation is the process of dividing an investment portfolio among different asset classes, such as stocks, bonds, and cash, in order to achieve a balance between risk and return. The goal of asset allocation is to build a diversified portfolio that can withstand market volatility and generate consistent returns over time. By spreading investments across different asset classes, investors can reduce the impact of any single asset class on their overall portfolio performance. Consistency in following ...
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