Achieve your goals with 'chemistry of investing'

A chemical reaction occurs when two or more substances (reactants) are mixed, resulting in one or more new substances. For example, when we combine two atoms of hydrogen with one atom of oxygen, we get H2O, i.e. water. However, if we add one more atom of oxygen, we get H2O2, i.e. hydrogen peroxide (a mild antiseptic used on the skin to prevent infection of minor cuts, scrapes and burns). Adding or subtracting even a small atom can result in completely new substances. To achieve a desired outcome (product), one needs to have a sound understanding of the properties of each atom and how they react when they come together. Similarly, one should allocate their investment in a combination of various asset classes judiciously. The right mix of these asset classes may help investors achieve an optimal level of risk-adjusted returns. Economic cycles and markets worldwide are very dynamic. Different asset classes tend to perform differently depending on where we are in the economic cycle, geopolitical events, etc. Due to the dynamic nature of international markets and economic cycles, it is not possible to consistently time the winning asset class. Furthermore, there may be a prolonged cycle of outperformance and underperformance of these asset classes. Different asset classes have varied degrees of correlation with e