Buy-Low, Sell High. This is what every investor aims to do unless you are Warren Buffet. His strategy is to buy and hold forever. But for us mere mortals with just a few bucks in our portfolios, we need a system that helps us meet our financial objectives. Strategic asset allocation is the process where we set our exposure to stocks, bonds, real estate, etc. to match our risk tolerances and preferences. Sticking to this discipline also helps us buy low and sell with the more passive portion of our portfolio. These are the assets we allocate to mutual funds and ETFs. Some people buy and hold a diversified portfolio of stocks and bonds and these assets perform the same function.