Aasset Allocation

To those considering asset allocation

Learning the Basics

• Asset allocation functions only when investors are knowledgeable about their options and how to use them.
• Diversification is key, and finding the right balance of risk and geographic spread is crucial.

Current Basic Investment Options

• Cash and Cash Management.
• Fixed Income: Government and investment-grade bonds, bond funds, structured products.
• Equities/Funds/Individual Stocks.
• Alternatives – Commodities, Hedge Funds, Private Equity, Venture Capital.
• Real Estate and Real Estate Funds.
• Currencies.


• Defining this and allocating based on individual comfort.
• Risk is relative to what you already own and what you want to own.
• Typically, cash is the safest, but it doesn’t yield anything. So, why is cash necessary?
• Venture capital is perhaps the riskiest but might offer the highest returns.


• Investment risk creation.
• Government policies.
• Geopolitical risks and shocks.
• Economic growth, unemployment.
• Revenue growth, interest rates, inflation.
• Changes in the economic cycle.
• Different interpretations of risk.

Risk and Reward of Asset Classes

Keeping It Simple

• Discipline, self-awareness.
• Risk management – being able to sleep soundly at night.
• Choosing the right bank/organization.
• Trust – trusting/basing decisions on bankers/investment advisors.
• Trusting oneself and one’s judgment.

Women and Investing

• Knowing what you desire.
• Managing finances.
• Separating living expenses and savings.
• Preparing for children.
• Determining the necessary liquidity.
• Identifying others who may need access rights.
• Taking responsibility for oneself.


• Putting thoughts into practice.
• Choosing where to go and getting there.
• Taking control of one’s own destiny/being prepared for inevitable ups and downs.
• Accepting advice but confirming it as one’s own decision. Thinking long-term. Avoiding impulsive actions. Continuing to invest.
• Enjoying success and learning from mistakes.