Distributing capital across asset classes to balance risk and return.
This scope is designed to help you build a practical understanding of Asset Allocation. Lessons move from core definitions to real-world context and common failure points.
Reading in order is recommended, but each lesson stands on its own.
Asset allocation is the disciplined process of dividing a portfolio across asset classes to balance growth, income, risk, and liquidity under real-world constraints. This article defines the concept, explains its portfolio-level application, and situates it within long-term capital planning using practical examples.
Asset allocation is the primary driver of a portfolio’s long-run risk and return. This article explains what asset allocation is, how it operates at the portfolio level, and why it is central to long-term capital planning and resilient portfolio design.
An in-depth explanation of the risk–return tradeoff in portfolio construction, showing how asset allocation, diversification, and time horizon shape long-term outcomes and resilience without prescribing investments or strategies. Built for readers seeking a clear analytical framework.
A clear, academically grounded overview of alternative assets, how they function within portfolio construction, and why they matter for long‑horizon, resilience‑focused capital planning. The article defines major categories, examines return drivers, correlation behavior, liquidity considerations, measurement issues, and real‑world allocation contex…
An in-depth explanation of the roles that equities and fixed income play in portfolio construction, why their balance shapes long-term outcomes, and how the allocation framework operates across different real-world contexts without offering recommendations.
A detailed, academically grounded explanation of how cash functions inside diversified portfolios, including liquidity management, volatility control, optionality for rebalancing, and long-term capital planning considerations such as inflation risk, liability matching, and governance.
Asset allocation by age links portfolio risk to an investor’s evolving time horizon, human capital, and liabilities. This article clarifies the concept, explains its portfolio-level mechanics, and situates it within long-term capital planning using realistic examples across the life cycle.
A clear, academically grounded explanation of strategic and tactical asset allocation, how they interact within a portfolio, and why their separation supports disciplined, long-horizon capital planning. Includes practical examples of institutional and household contexts without prescribing specific investments.
A rigorous overview of risk-based allocation models, why they matter for long-horizon portfolios, and how they shape portfolio-level decisions about diversification, resilience, and capital planning. Practical examples clarify concepts without providing investment recommendations.
A rigorous overview of how return expectations are defined and estimated across major asset classes, and how those expectations inform long-horizon portfolio construction and capital planning without prescribing specific allocations or trades.','content':'Return expectations across assets form the intellectual foundation of long-horizon portfolio c…
