Strategic Asset Allocation for Capital Appreciation

Imagine you are a financial advisor working with a client named Mark who is 30 years old, single, and has a high risk tolerance. He has recently received a substantial bonus and wishes to invest $100,000. Mark's primary goal is to maximize capital appreciation over the next 20 years, as he plans to buy a home in the future. He has no debt and maintains an emergency fund.

In light of Mark's situation, outline a strategic asset allocation recommendation that takes into account his risk profile, investment horizon, and goal of maximizing capital appreciation. Discuss the rationale behind your chosen asset classes, the percentage allocation to each, and how this allocation aligns with Mark's investment objectives. Include potential challenges or risks associated with the proposed strategy.