Question
Suppose you have $100,000 dollars to invest. Where would you invest it? Typical asset classes are cash (such as bank accounts, money market accounts, Treasury
Suppose you have $100,000 dollars to invest. Where would you invest it?
Typical asset classes are cash (such as bank accounts, money market accounts, Treasury bills, etc.), stocks, bonds, and real estate. The asset allocation (i.e., allocation of the funds across different asset classes) creates an investment portfolio.
How much to invest in which asset classes depends on a multitude of factors including your investment goals, return expectations, level of risk tolerance (how much risk you are willing to take), your age, other savings and assets, expected liquidity (cash) needs, investment time horizon (short, medium or long term), expected economic and market conditions, etc. The current valuation levels of asset classes including stocks, the expected economic slowdown/recession, higher inflation and interest rates, the tight monetary policy of the Fed, the potential government shutdown in November, and geo-political uncertainties are important considerations in determining which asset classes to invest in.
Question: Suppose you have $100,000 dollars to invest. Where would you invest it?
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