Before creating a portfolio, you need an asset allocation strategy. Specifically, you need to know whether to allocate your assets in a strategic, dynamic, or tactical method. All methods can move your portfolio toward the ultimate goal of diversification. But your financial goals, investment skill, personal risk appetite and aggressiveness in seeking rewards will inevitably push you toward one asset allocation model over the other.
Once you understand the differences between the dynamic, strategic, and tactical asset allocation paradigms you can properly implement an optimal mix of assets in your portfolio.
See which method works for you
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