GHAUS asset allocation

Asset allocation is widely viewed as one the most important investment decisions, but there is little consensus on how investors should make this choice. This article proposes a simple and intuitive three-step process, referred to as GHAUS, that accounts for all the relevant variables, including (and with particular emphasis on) the individual's ability to tolerate losses, that omits the use of black boxes and that any individual can easily implement. © 2016 Macmillan Publishers Ltd.