What is the core of long-term stable income? Very directly, it is asset allocation. Many people may want to say, what can be said separately? Don't put eggs in the same basket?

Yes, everyone understands this truth, but have you made any money?

In fact, the core of the problem lies in how far you have learned and whether you can really do it. Asset allocation is not simply that I bought ten stocks. If you understand it this way, it may be that you can't always make money.

The real asset allocation is a comprehensive judgment after combining personal investment objectives and risk tolerance, and then determining the investment proportion in large-scale assets such as equity, bonds and commodities, thus dispersing large-scale assets.

For example, if you only do equity plus creditor's rights, this simplest configuration will have at least two effects.

The first effect is to reduce the investment risk of a single asset and control the risk. Usually, when the stock market rises, the bond market will perform relatively poorly, while when the stock market falls, the bond market will perform relatively well. The second effect is to achieve controllability at the operational level, with large fluctuations in the stock market and small fluctuations in the bond market. If we were all in the stock market, it would go up very well. Once it fluctuates or falls, you can only passively watch your assets shrink every day. If you have done the simplest allocation of equity and creditor's rights before, you can withdraw some funds from your creditor's rights assets because of small fluctuations or even profits, and make up the position appropriately when the stock market falls, so as to realize low realization and reduce the overall cost.

The dispersion of asset allocation is the dispersion of large-scale assets. In addition, we should do a good job of time dispersion, and don't put all the funds in our hands at one time.