Asset Allocation is an absolutely essential part of investing, and many people sadly overlook it.
Asset Allocation is an absolutely essential part of investing, and many people sadly overlook it. They rush into buying investments and don't spend much time thinking about the mix. Diversifying your investments through asset allocation is the foundational layer, and it's how you build your house on the rock, not the sand. If you invest without properly balancing your portfolio, you could get trapped in an unbalanced position and be caught on the wrong side when the market moves. Proper diversification should be considered across asset classes (such as equities, bonds, properties, commodities, crypto and even collectables), across geographies (don't be all in Canada or the US, for example) and across industries (don't be all in tech).