By Ben Carlson
A Wealth of Common Sense
In a rational world, every investor would set their asset allocation based on their willingness, ability, and need to take risk.
One would balance a range of expectations for the various asset classes and match those possibilities with their goals and objectives.
Sure, plenty of investors consider their risk profile and time horizon when building a portfolio.
But we live in an irrational world—one in which experiences, emotions, circumstances, luck, and timing shape both feelings and portfolios.
The commentary is the opinion of the author and distributed with permission under limited license. All data and charts presented herein are from sources deemed to be reliable but are not guaranteed to be accurate. The financial information presented is for information and educational purposes and is not a substitute for professional advice; use of or reliance on any information herein is solely at your own risk. Edited from the original.