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There will, naturally, be times when certain of these funds do much worse than others. With the illustration here we shall keep things simpler by assuming there have not been regular contributions (investments) after the initial purchases. If one began, in this easy example, with $25,000 total, or $5000 in each of the categories, and had an average increase of 12%, one might wind up a year later with $6000 or so in REITs, $4500 in global bonds plus cash, $8000 in natural resources, $5250 in domestic equities, and $4250 in international stocks. One can then reallocate among them to restore the intended 20% allocation (roughly $5600) in each, in so doing assuring that one buys shares low and sells other shares when they are up, once again enhancing the profitability of the overall investment approach. Best of luck with your own allocation decisions and implementation! Some experts say these are even more fundamental to long-term financial success than being talented at picking particular securities.
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