Understanding the Keys to Investing

Markets Work ...Capital markets do a good job of fairly pricing all available information and investor expectations about publicly traded securities.
Diversification is Key ...Comprehensive, global asset allocation can neutralize the risks specific to individual securities.
Risk and Return are Related...The investor's compensation for taking on increased levels of risk is the potential to earn greater returns.
Portfolio Structure Explains Performance...The asset classes that comprise a portfolio and the risk levels of those asset classes are responsible for most of the variability of portfolio returns.