Chapter 06
Asset allocation decides how steadily you move
Article 06 / 07
01
Do not mistake a single winner for a full strategy
The best-performing asset in one phase will not always lead the next phase. If all capital sits in one direction, a regime shift can create a much deeper drawdown than expected.
02
Allocation is really about correlation management
Good allocation is not just owning many things. It is making sure everything does not break at the same time. Cash, stable assets, and growth assets each play different roles.
03
Rebalancing beats emotional chasing
When one asset class runs far ahead, allocation drifts. Periodic rebalancing helps restore the intended risk profile and reduces the temptation to keep piling into what is already hot.