Slicing the pie.It's time It's Time was a successful political campaign run by the Australian Labor Party (ALP) under Gough Whitlam at the 1972 election in Australia. Campaigning on the perceived need for change after 23 years of conservative (Liberal Party of Australia) government, Labor put forward a to recarve your investment strategy How often have you wondered when was the right time to invest? Questioned how best to combine your investments? Deliberated about what securities to pick? Fretted about market volatility? Achieving superior results from your investment portfolio this year will require more than a random mix of investments. You will have to allocate your financial resources effectively and adopt a disciplined investing strategy that includes risk management. For most investors, this means distributing assets among a variety of investment classes or types, a process known as asset allocation Asset Allocation The process of dividing a portfolio among major asset categories such as bonds, stocks or cash. The purpose of asset allocation is to reduce risk by diversifying the portfolio. . Asset allocation enables you to develop a personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. , diversified diversified (di·verˑ·s portfolio by strategically combining different holdings in varying proportions. Interest-rate changes influenced some of those market shifts last year, and according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Robert Natale, portfolio manager for Bear Stearns' $600 million S&P Stars Fund, the Federal Reserve will probably raise rates once more early this year. Then, if the Fed lowers rates by fall, the value of future stock earnings will go up, and so will stock prices. For the long-term, Natale foresees fairly healthy corporate earnings with double-digit growth over the next nine to 12 months. While these and many other changes may occur in the market and throughout the investment industry, several asset classes will continue to form the basic building blocks of most asset-allocation plans oriented o·ri·ent n. 1. Orient The countries of Asia, especially of eastern Asia. 2. a. The luster characteristic of a pearl of high quality. b. A pearl having exceptional luster. 3. toward keeping risk in check. These include domestic stocks and bonds, global stocks and bonds, and cash or cash equivalents. The pie-chart models are examples of asset allocations in portfolios with balanced, income, growth and principal-preservation objectives, and can be personalized according to your current investment strategy. [GRAPHS OMITTED] |
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