Discussing the trade-offs in asset allocation

An allocation discussion begins with objectives, constraints and time horizons. Asset labels alone do not describe how exposures may behave together.

Consider the role of liquidity, shared economic drivers and the possibility that relationships change during market stress. The ability to hold an exposure and the willingness to do so are separate questions.

These questions provide a framework for discussion. They do not determine a portfolio for an individual or establish the suitability of any investment.