Asset allocation is how you split money between stocks, bonds, and cash. It drives most portfolio outcomes long before any single pick. Set it based on your time horizon, then stay the course. The mix matters more than the ticker.
Oseola McCarty washed and ironed clothes for 75 years, saved quietly, and gave $150, 000 to fund scholarships for Black students. You don’t need a big income to build something meaningful. You need time, discipline, and patience.
This week’s homework: write one sentence next to everything you own explaining its job in your plan. If it comes easy, it’s an investment. If not, it’s a ticker—and tickers are the first things sold in a bad month.
A 10% drop during the year doesn’t decide how the year ends. Five of the last eight years saw double-digit declines, yet six finished higher. The low and the finish are different questions. Nobody knows the ending in the middle of a bad month.
When the 10-year Treasury yields over 5%, stocks face real competition. At 25x earnings, the S&P 500’s earnings yield is just 4%. Stocks can grow, but slowing earnings with high valuations is the risk to watch.
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