Stick to your asset allocation from "summary" of The Bogleheads' Guide to Investing by Taylor Larimore,Mel Lindauer,Michael LeBoeuf
Maintaining your asset allocation is crucial for long-term investment success. This allocation determines the percentage of your portfolio that you have invested in different asset classes, such as stocks, bonds, and cash. While it can be tempting to try to time the market or chase hot investment trends, deviating from your asset allocation can have negative consequences. The purpose of asset allocation is to create a diversified portfolio that balances risk and return based on your financial goals and risk tolerance. By spreading your investments across different asset classes, you reduce the impact of market volatility on your overall portfolio. This diversification helps you weather market downturns and capitalize on market upswings. Rebalancing your portfolio periodically is essential to ensur...
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