For some investors, taking risks in a sector like tech is easy to handle. For others, the security of bonds or blue-chip stocks outweighs the potentially higher returns.
If you’re approaching retirement and want to limit your portfolio's downside, switching your asset allocation in a more risk-averse direction is often prudent. Young investors have time and physical capital to make up any money lost in drawdowns; older investors don’t have this luxury of recovery time.
