Not exact matches
That mix gives you exposure to
asset classes that tend to
move at
different times and speeds, he says.
To build a diversified portfolio, an investor generally would select a mix of global stocks and bonds based on his or her individual goals, risk tolerance and investment timeline.2 The chart below highlights how those broad
asset classes have
moved in
different directions over the past 20 years.
In short, the practice is nothing more than
moving an investor's money into
different asset classes such as stocks, bonds, mutual funds, real estate, gold, other commodities, international firms, fine art, etc..
Here is the one
asset class that may even
move in a
different direction than the majority of other
assets (e.g., domestic bonds, domestic stocks, international stocks or high - flying commodities, etc.).
While these are all
different investments, they are all still in the same
asset class and generally
move in concert with each other.
But the fact that two
asset classes tend to
move in
different directions is exactly why you should own both.
This is probably because stocks with market capitalizations this small tend to either go under, get bought out, merge, return to private hands, too many new firms go public too quickly, and / or they quickly grow into becoming small - cap stocks (which
moves them from one
asset classification into a
different asset class).
By using free switches, policyholders are able to
move their investment between
different asset classes like debt, cash and equity, depending on the risk appetite.
On the internship you were able to rotate on
different desks, although I chose to spend more time on a particular desk rather than
moving to
different areas and
asset classes.