Dreman's asset allocation model

Dreman's asset allocation model emphasizes investing across different asset classes—like stocks, bonds, and cash—to manage risk and maximize returns. It suggests that investors should consider their risk tolerance and investment goals when determining how much of each asset class to hold. Dreman, known for his contrarian approach, advocates buying undervalued securities and suggests a longer investment horizon to ride out market fluctuations. By diversifying investments and focusing on value, the model aims to create a balanced portfolio that can withstand market volatility and enhance overall performance over time.