Mammoney - Your Ultimate Guide to Personal Finance & Investing

Introduction to Portfolio Construction Portfolio construction is both an art and a science, and mastering it requires a deep understanding of various investment principles and strategies. At its core, portfolio construction involves selecting a mix of asset classes, such as stocks, bonds, and alternative investments, to achieve an investor's risk and return objectives. However, advanced portfolio construction goes beyond simple asset allocation. It involves incorporating sophisticated strategies, understanding market dynamics, and continuously refining the portfolio to adapt to changing economic conditions. In this article, we will explore advanced portfolio construction techniques that can help investors build resilient and high-performing portfolios. We will delve into asset allocation, risk management, diversification, and other key factors that play a crucial role in constructing an advanced portfolio. Strategic Asset Allocation Asset allocation is the process of dividing an in...