Bedrock of investing never changes!

The bedrock of investing stays constant. It never changes, irrespective of the despair or euphoria in the market. Certain financial principles like asset allocation do not change. There is a reason some money is allocated towards debt and some towards equity. There is a thought process that is behind it. Every portfolio needs the buffer of debt and the growth of equity. Don’t ignore the fundamentals of an investment. Don’t ignore asset allocation. During a bull run, we tend to believe that the market is indispensable. It will never fall. Don’t be naïve. It will. And that is the time the debt portion of your portfolio will provide a huge amount of stability.