The following excerpt is from an article that originally appeared on WND Econony
As discussed in a previous column, I operate on the simple philosophy that any investment should be a direct solution to an individual’s personal problem. If a person had no personal financial problems, it would be foolish for him or her to expose his or her money to risks if they had nothing to gain.
Most people operate with the philosophy that their principle goal when making any investment is to make as large a profit as possible within an acceptable range of risk. Other people carry this philosophy a step further and try to implement a system of asset allocation to diversify the risks. The theory of asset allocation attempts to predict the future economic cycle, inflation’s rise or fall, and then creates an asset allocation mix to use on investment assets.
While I feel that there is a lot of merit to this system, it does notpost was originally published on this site