Asset allocation is a crucial aspect of stock investing that is often overlooked. It refers to the distribution of your investment portfolio across various asset classes, such as stocks, bonds, and cash. Asset allocation is to reduce risk and increase profits. Your portfolio should be diversified to lessen its exposure to any particular asset class or investment. You can withstand market downturns and prevent large losses with the aid of a well-diversified portfolio. Asset allocation is a continuous process that requires rebalancing on a regular basis. You can meet your financial objectives while lowering risk by carefully deploying your assets.
The importance of asset allocation in stock investing
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