Allocation Strategy for 2021
With the start of a new year and a tumultuous 2020 behind us (which saw historic volatile periods), it is imperative to strategically position oneself to achieve an optimal risk-adjusted return on an entire investment portfolio basis. Even with the S&P 500 achieving a +16% return in 2020 and the Technology equities ETF (ticker: QQQ) significantly outperforming the S&P 500, the S&P 500 reached a low of -30% on March 23rd, 2020. Establishing some exposure to cash-flowing assets help tamper down the volatility, prevent trigger sales during significant declines (as we experienced in March and April of 2020), and ultimately improve the risk-adjusted return of a portfolio. For those without the cash-flowing hard assets already established, considering those asset classes might be useful as they do offer tax advantages and a much better understanding of the operations of such a business. Allocating new capital into the stock market (specifically the technology sector) in 2021 is
