Asset allocation: An essential guide

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Answers to your key questions about this important strategy for reducing risk in your investment portfolio and staying on track to meet your goals.
When the markets are performing well, most people feel confident in their investing strategy. But when markets turn, it can be easy to panic. That's when your asset allocation strategy — or the percentage of your portfolio you've chosen to devote to different assets such as stocks, bonds and cash — can provide useful perspective. "Your long term asset allocation strategy acts as a roadmap to help guide you through every kind of market," says Marci McGregor, head of CIO Portfolio Strategy, Chief Investment Office, Merrill and Bank of America Private Bank. Here, McGregor answers your most common questions about this strategy and how to implement it.

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