Implementation of Global Diversification in Asset Allocation

Easy Asset Allocation Asset Allocation Implementation

Mark is a financial analyst at a wealth management firm. He is currently developing an asset allocation strategy for a moderate-risk investor who is 40 years old and plans to retire in 25 years. The investor's current portfolio consists of 60% equities and 40% fixed income. Given the long-term investment horizon and the investor's moderate risk profile, Mark is considering several factors before finalizing the allocation.

Specifically, he is evaluating the benefits of maintaining a balanced approach to asset allocation while also accounting for changes in market conditions and the investor's risk tolerance over time.

Mark should lock in the current asset allocation and avoid making changes to hedge against market volatility.

Mark should gradually shift the allocation to include a higher percentage of fixed income as the investor approaches retirement.

Mark should diversify the portfolio globally, increasing exposure to international equities to enhance returns.

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