Thursday, 25 June 2009

How Much Should You Invest in Stocks?

When it comes to deciding on the percentage you should devote to common stocks, there are several alternatives that should be considered. All have some merit, and none are perfect.

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

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