Global Asset Allocation: A Survey of the World’s Top Asset Allocation Strategies
one’s capacity for risk-bearing depends importantly upon one’s age and ability to earn income from noninvestment sources. It is also the case that the risk involved in most investments decreases with the length of time the investment can be held. For these reasons, optimal investment strategies must be age-related.
Burton G. Malkiel • A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Tenth Edition)
Anyway, the little-known fact is that the major predictor of your portfolio’s volatility doesn’t stem from the individual stocks you pick, as most people think, but instead from your mix of stocks and bonds.
Ramit Sethi • I Will Teach You to Be Rich, Second Edition: No Guilt. No Excuses. No BS. Just a 6-Week Program That Works
As an aside, there are studies that indicate holding a 10-25% position in bonds with 75-90% stocks will actually very slightly outperform a position holding 100% stocks. It is also slightly less volatile. If you want to go that route and take on the slightly more complicated process of periodically rebalancing to maintain the allocation, you’ll get
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