#asset-allocation

#asset-allocation

Investing often feels like navigating an unpredictable storm. Markets rise and fall, and the news cycle constantly blasts warnings about the next big crash, leaving you worried about losing your hard-earned cash if you back the wrong horse. True financial resilience comes from understanding that no single company, sector or country performs well all the time. By accepting uncertainty rather than fighting it, you build a foundation that withstands shocks and positions your wealth for sustainable growth.

If you've chosen a target asset allocation-the mix of stocks, bonds, and cash in your portfolio- you're probably ahead of many investors. But unless you're investing in a set-and-forget investment option like a target-date fund, your portfolio's asset mix will shift as the market fluctuates. In a bull market you might get more equity exposure than you planned, or the reverse if the market declines. Rebalancing involves selling assets that have appreciated the most and using the proceeds to shore up assets that have lagged.

Private wealth - which refers to money held on platforms run by the private banking divisions of places like Goldman as well as wealth advice giants like Merrill Lynch, independent advisors, and family offices - is eager to invest in hedge funds and has plenty of capital to put to work. Goldman's report estimates that less than $500 billion of the $50.7 trillion of private wealth assets are in hedge funds.