How can 'asset allocation' help me create wealth?

How can 'asset allocation' help me create wealth?

If you knew precisely the best investment that would produce the biggest return, you would just put all of your money into that. It would be very simple, and there would be no asset allocation. But, with asset allocation, you're under the assumption that "I can't predict the future, I don't know what's going to go up, I don't know what's going to go down." So you're spreading your investments across different kinds of asset classes and by spreading your assets across the different asset classes, you're also spreading your risk. So if one class is not doing well, that's ok, the others are probably doing better. It's a matter of spreading the risk and avoiding major losses.