Allocating Liquid Assets
Okay, now we're really gettin' into it, huh? If this sounds like a complex concept to you, it's not. If you have some money to invest in "the market" then you'll need to diversify your investments. You do this by chopping your money into chunks (figuratively) and putting each chunk into a different investment category. Each category behaves a bit differently, each has a different level of risk, from each you could expect a different long term return.
And what are these categories? Well, they are arrayed across a spectrum, call it the risk/return spectrum (doood, another spectrum... so it will be like a spectrum inside a spectrum... that's totally freakin' with my head man).
And what are these categories? Well, they are arrayed across a spectrum, call it the risk/return spectrum (doood, another spectrum... so it will be like a spectrum inside a spectrum... that's totally freakin' with my head man).
And just how are you supposed to use this spectrum? Well, let's talk about it.