In fact, there is no such thing as a perfect formula for asset allocation.
It depends on such factors as
- your age, and
- your temperament.
It might also depend on what you think the market is going to do.
- If it's about to soar, you would want to be fully invested.
- But if you think stocks are poised to fall off the cliff, you might prefer to seek the safety of a money-market fund.
Related posts: Some Simple Formulas for Asset Allocation