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Knowing Strategic Asset Allocation

While markets don’t always behave rationally, their performance usually mirrors the expectations of the Modern Portfolio Theory. This makes strategic asset allocation one of the most effective investment strategies for value investors.

Underpinning the Modern Portfolio Theory is the belief that markets are essentially efficient, which means asset prices fully reflect all available information. In this environment, excessive risk taking for optimal returns is not only unnecessary, but contrary to a value investor’s long-term goals.

Let us dive a little deeper into understanding the implications of strategic asset allocation.

Significance of Strategic Asset Allocation

Advantages and Disadvantages of Strategic Asset Allocation

The Bottom Line