Stocks historically provide the best long-term returns. However, individual investors have different tolerance levels when it comes to accepting risk and losses.
Investment portfolios are classified into three categories: conservative, moderate and aggressive.
For conservative investors, about 20-30% of their portfolio is in stock investments, 40-70% is in bonds and roughly 10% is for alternative investments.
For moderate investors, half of the portfolio is in stocks, 30% is in bonds and 20% is in commodities and alternative investments. Of the total stock portfolio, half is allocated to local shares and half global stocks.
An aggressive portfolio comprises 70% stocks, with the remaining 30% in bonds and alternative investments, including gold and Bitcoin.
During the recent bank collapses in the US, the dollar depreciated as a huge amount of funds were injected…
