Consider this: 91.5% of your portfolio's performance is based on how well you allocate your money among asset classes. Only 8.5% is based on when you get into the market and which securities you choose.
When it comes to investment performance over the long term, choosing an asset allocation strategy — and sticking with it — can make a significant difference.
CONTRIBUTORS TO PORTFOLIO PERFORMANCE
Source: "Does Asset Allocation Policy Determine 40, 90, or 100 Percent of Performance?" by Roger G. Ibbotson, Financial Analysts Journal, 2000.
