How To Diversify For Maximum Return Click on any of the topics in the Table of Contents listed below to go directly to that discussion. How To Diversify For Maximum Return You may have read recently about asset allocation, and are wondering whether an investor such as yourself need to be concerned about this seemingly esoteric concept. Market timing strategies, such as moving your money into stocks when the market is rising or out of stocks when it's falling, just do not work.
Asset allocation is the cornerstone of good investing.
Each investment must be part of an overall asset allocation plan. For more sophisticated investment analysis, this profile should be translated into a graph or curve by a computer program. It's important to use a good computer program because of the complexity of the task. The asset classes should balance each other in a way that will give the best return for the degree of risk you are willing to take. Using computer programs, financial advisors can determine the proper mix of assets for your financial profile.