As a rule, portfolios should be sufficiently diversified so that all major asset categories are represented. Subcategories exist within these classes. The amount that investors should allocate to each asset class depends on their risk tolerance and time horizon. If retirement or other goals are far away, assets can be more heavily weighted in growth investments which carry higher risk. Short-term goals generally call for stable value investments with low risk.
Independent research comes in a variety of forms.
At UBS PaineWebber, the investment strategy team focuses on identifying trends before they emerge. This thematic research provides a strategic context in which to evaluate individual investment recommendations. Favorable factors for equities are expected to remain in place, including low interest rates and inflation, education and retirement needs and Social Security fears. Individual investors often are less concerned about benchmarking performance to a particular index than they are about losing money. Each asset class has its own set of risks.