Keep it simple asset allocation

We have money that needs to be invested and there are many ways it can get allocated. It is proven that the best investment returns happen with correct asset allocation.

Let us get started with simple asset allocator.

Stocks beat returns of all other asset classes but only over long periods of time. Some times, it is longer than our horizons allow (like 2 decades, 3 decades).

Stocks give the best returns when purchased at low valuations. Stocks give the best returns when we don't follow the herd.

Our age determines how much we can allocate to bonds. This is done to ensure we cut exposure to risk as time is not on our side.

My effort on this blog is to show monthly stock allocation for moderate and aggressive investor. I would also use this technique for my investments, so I can see how this works for the next decade. If things go well, may be this allows a lot of small investors to benefit in coming decades. If it doesn't, we can conclude that simple or complex, this is a game that chooses winners and losers randomly.