Rules of the Game: Asset Allocation

For years, when I was a growth-stock trader, I bought into the notion that proper use of technicals and market timing were the only things necessary to grow wealth in the stock market. Among the particular crowd I was associated with, Modern Portfolio Theory (MPT) was something to be mocked and incorrectly termed "buy and hold."

These days, I've become an MPT convert. When helping our clients stay retired, it's really not a good idea to be trading in and out of Green Mountain Coffee Roasters (GMCR) or Proto Labs (PRLB). Instead of betting that chart patterns will yield the hoped-for results (based upon absolutely no empirical research, just anecdotal occurrences), it's wiser to construct portfolios using various asset classes, and based on expected returns....282 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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