How to Achieve the Right Asset Allocation
It has been my observation that most investors focus on one aspect of investing more than any other—the recommendation, and by that I mean specific security advice.
That is because investors have been trained by brokers and the media from time immemorial to believe that recommendations are the primary road to investing success.
Yes, recommendations are important, but contrary to most people’s belief, they are only the final step in the investing process. Recommendations are less important than the proper asset allocation and diversification decisions that necessarily precede them. This article discusses these first two far more important steps.
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