Every asset class and investment instrument carries with it a certain degree of risk and promise of return. However, since the sources of risk and return are different for each asset class, their response to macro-economic developments is also varied. This is why in similar investment environments; some asset classes will generate negative returns while others will generate stable to positive returns. By adopting an optimal asset allocation strategy, you can ensure that no event or macro-economic environment has an inordinate impact on your portfolio returns.