Asset Allocation

From: David Martin <dmartin@hc.ti.com>
Subject: Asset Allocation
Date: Mon, 12 Oct 1998 12:48:04 -0500

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	Some people have asked why they should use asset allocation
rather than put all of their assets into the best performing
asset. One answer to this is that asset allocation refers to your
entire set of assets, including your short term investments, such as
money for a downpayment on a house, or an emergency fund. Since you
should have a very low risk tolerance for these investments, they
should be placed in a low risk investment such as a money market
fund. Over the long term, this will not have as high a return as other
investments, but it is a safer investment, which is the chief concern
for short term money.

	


					-David Martin





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