What percentage of my savings shall I invest in stocks? And what percentage shall I invest in bonds or keep in cash or other investment classes like real estate?

The questions in what to invest and how much of your savings to invest are on the top of the mind of every investor.
 

Within the coming weeks, we will issue the Stock Trend Investing Tactical Asset Allocation Model. For our Twitter followers we will have a special surprise on this.

 

Our Tactical Asset Allocation Model addresses 3 key asset allocation questions:

1)    In what type of assets, or asset classes, should I invest?

To be comfortable with your investments, you need to invest in asset classes (stocks, bonds, funds, cash, etcetera) that suit you.

2)    How much should I invest in each of the asset classes?

After you have identified what the asset classes are that you want to invest in, you need to define with what level or size of investment you are comfortable.

3)    How fast or with what steps should I invest in the chosen asset classes up to the maximum to invest that I have defined for myself?

Having identified with what maximum investment you are comfortable, does not mean that you have to increase immediately your investments in the stock market up to that level, even when you think it is a good time to invest.

The picture in this blog post shows the framework we use to answer the first question “In what type of assets should I invest?” Four different factors limit for each individual the total number of available asset classes to “My Choice of Assets”.

These four factors are:
1)    The available time to study the assets
2)    The desired review frequency of the investment portfolio
3)    The risk tolerance for “Return Of Investment”
4)    The ability to recognize trends in an asset class

In our soon to be published eBook we will go into detail for each of these 4 factors and we will address the 3 main questions that we raised here.
 

As said earlier, we will have a special surprise on this for our followers on Twitter.

Follow Stock Trend Investing now on Twitter.