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Asset Allocation

Found 8 Articles.
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Diversification Shows Its Power with More to Come

September 17, 2019

Diversification is more important than it has been in some time. I expect the power and importance of diversification to continue and even increase. Fortunately, our portfolios have been diversified, and it has been paying off, as you will see in this month’s Portfolio Watch. Investing seemed easy when all investors had to worry about […]

Do Retirees Own Too Much Stock?

September 13, 2019

What’s the right amount of stock for you? That’s the question we explore in the latest Retirement Watch Spotlight Series online seminar. Ask the experts, and you’ll receive a wide range of answers. More importantly, the latest research has concluded that most retirees have far too much stock in their portfolios at retirement. This issue […]

Why Portfolios Need More Diversification Now

June 27, 2019

We’re clearly in the late phase of the economic and investment cycle. The big debate is about how late we are in the cycle. The U.S. economy is past the cycle peak. Jobs are being created and workers are being hired at slower rates than a year ago. Corporate spending and investment are down. Industrial […]

Retirement Investing – Why It’s Best to Mix Things Up with a little Asset Allocation

March 7, 2019

I recently came across an article in Outside magazine online describing a study that sought to determine which form of exercise is better for health and longevity. The choice was between cardio, or aerobic, exercise and weight lifting, or resistance exercises. It is a longstanding and controversial question among people who study health and fitness. […]

Some Lessons In Diversification

July 16, 2018

Morningstar recently used its database to show how a series of three-fund diversified portfolios would have performed over the last 20 years. The idea was to use the three-fund portfolio idea to simplify investing and show how investors could improve their diversification. One point to keep in mind is that the last 20 years was […]

Portfolio Allocation and Bonds in a Low-Yield World

August 30, 2017

The investment firm AQR recently produced a paper discussing how to allocate portfolios in a world of zero interest rates. In particular, they asked whether bonds have a role in a portfolio when interest rates are near zero. Their answer is bonds do have a role, but it is a narrower one than in the […]

How Tactical Asset Allocation Helps

November 21, 2016

This paper from Research Affiliates shows that many people time markets, without acknowledging it, and do so to their detriment. It develops several simple strategies for deciding how to tilt an investment portfolio of “smart beta” strategies and compares the results. Selecting the three smart beta strategies with the best past performance would have cost […]

A Tactical Asset Allocation Primer for Investors

January 7, 2016

Here’s a long article from Philosophical Economics blog on tactical asset allocation and marketing timing. The piece is in favor of periodically shifting the allocation of a portfolio. Most things you hear and read on the subject favor a buy-and-hold approach. As I said, it’s a long piece and apparently is the first of several. […]

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