Strategic Asset Allocation for Moderate Risk Investor

John is an experienced investor with a moderate risk tolerance and a long-term investment horizon of at least 10 years. He is seeking guidance on how to allocate his investment portfolio strategically to achieve a balanced growth while minimizing risk.

Based on the information provided, outline the main components of a strategic asset allocation plan for John. Your response should include the importance of asset classes, the role of diversification, and the rationale for setting specific allocation percentages for each asset class. Discuss how John's risk tolerance and investment horizon influence these decisions.