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A Wall Street Craps Definition: Asset Allocation

November 7th, 2011

asset allocation:

1. the process of intelligent decision-making regarding the placement of financial assets for investment purposes.

2. the ability to move financial assets from one investment class to another, based on prudent risk/reward evaluations and individual investor objectives.

3. the critical decisions that savvy independent investors must make regarding where to put their money and in their proper amounts in order to play Wall Street Craps successfully over time.

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“True diversification is hard to achieve. The major portfolio building blocks tend to move in the same direction at the same time. That severely limits the protection that diversification affords. Recognize that the building and deployment of cash equivalent reserves is probably your best diversification tool.”

Robert Metz and George Stasen ~ Authors of “It’s A Sure Thing” (1993)

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