Moving Forward
Recently, I have been thinking about my portfolio asset allocation and was wondering if there are any improvements that can be done. I have the habit of reading up on financial blogs and InvestingNote, and so a new idea came up when a came across an article. It was an article on 'Core-Satellite Portfolio' and decided to look deeper.
'Core-Satellite' vs 'Barbell'
I interpret the 'Core-Satellite Portfolio' loosely as having a more conservative larger portfolio as core, and smaller satellite portfolios with higher risk assets. This is similar to the 'Barbell Strategy' which was suggested by DBS CIO. I preferred to use the term 'Core-Satellite' for my portfolio as it highlights the weightage of a larger conservative Core portfolio, and a smaller higher risk Satellite portfolio. Whereas, Barbell may suggests having an equal weightage. Therefore, I would see that a Barbell portfolio is riskier than a Core-Satellite portfolio....