Relations (1)
related 2.58 — strongly supporting 2 facts
Stocks are a primary asset class whose allocation is determined by an investor's time horizon, as evidenced by the need for longer horizons to recover from volatility [1], [2], and [3]. Investors often adjust their exposure to stocks based on their proximity to specific financial goals [4], [5].
Facts (2)
Sources
Retirement Portfolio Assets: Allocation by Age - Charles Schwab schwab.com 1 fact
claimYounger and middle-aged investors may have a higher allocation in stocks because they often have goals with longer time horizons, such as saving for retirement.
Asset Allocation Planning - T. Rowe Price troweprice.com 1 fact
claimInvestors with longer time horizons to grow and recover from short-term market movements may allocate more to riskier asset classes like stocks.