The aims of this chapter are–
- Benchmarks – To establish buy and hold benchmarks against which the success or otherwise of mechanical systems trading can be judged.
- Diversification – To demonstrate the benefits of diversification within asset classes.
- Asset allocation – To demonstrate the benefits of the addition of other asset classes to stock investment.
- Standalone commodity investment – To explore the returns available from long-term standalone investment in commodity ETCs.
Asset allocation and diversification
Asset allocation determines return
Successful investing is largely a matter of asset allocation and diversification, not picking individual investments (let alone individual stocks). Asset allocation ...