A Publication of WTVP

With the 2003 equity markets having experienced their first positive returns in four years, investors finally have a reason to applaud. But with a new year comes the question of the market's outlook going forward and a reminder to rebalance your portfolio with a suitable asset allocation strategy.

Why Does Asset Allocation Matter?

After an almost 20 percent return on the S&P 500 and a 40 percent surge in the Nasdaq, one can certainly make the case that the easy money has already been made. Simply riding the wave is no longer an option. Rather, it's imperative to protect your portfolio against a possible downturn while positioning your holdings for the best possible returns. Your asset allocation decisions are critical in balancing these two needs. In fact, history has proven that exercising a sound asset allocation strategy has a larger impact on a portfolio's returns than picking individual securities.

How Can I Use Asset Allocation Strategies To My Advantage?

In its simplest form, asset allocation will offer a basic means of balancing and rebalancing your portfolio to suit your individual investment profile and objectives. It can also be used to help implement your particular investment style and aid you in diversifying across various industries or sectors.