But asset allocation is ideal for those of us who aren’t psychic, who need money in the foreseeable future and who are prone to do silly things if our net worth dips too fast.By balancing the types of assets we own among stocks, bonds, and cash, we trade the best? returns we’d get if we timed the markets perfectly for predictability and piece of mind.No one mix of assets is right for everyone all the time. Those closer to needing their money may put a premium on predictability. For them, an asset allocation that tries to minimize losses is a good choice. But that same allocation would be a poor choice for a young investor with 40 years to go before retirement. It sacrifices too much potential return for safety that this investor doesn’t need.