Global Asset Allocation: A Survey of the World’s Top Asset Allocation Strategies

An asset that goes up 4% in straight-line fashion is potentially more valuable than an asset that goes up 8% with lots of volatility. Why? Because we’re human beings and we have emotions, and we are all hard-wired to be terrible investors.

So the ideal portfolio should have stocks, bonds, cash, gold, and real estate. In what proportions? Well, why not keep it simple and give 20% to each? 20% stocks 20% bonds 20% cash 20% gold 20% real estate This is what I call the Awesome Portfolio.