Diversification and
asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.
Asset allocation strategies do not assure profit and do not protect against loss.
Diversification and
asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.
Not exact matches
For investors who don't have the time or the expertise to build a diversified portfolio,
asset allocation funds can serve as an effective single - fund
strategy.
The good work
done over the last couple of years in the field of algorithmic tactical
asset allocation strategies may start to pay off during the next economic regime shift.
Investing
strategies, such as
asset allocation, diversification, or rebalancing,
do not assure or guarantee better performance and can not eliminate the risk of investment losses.
I know much has been said about the conventional
strategy of passive investing, which is to pick your
asset classes according to correlations, rebalance often, and stick to your
allocations, whatever the market
does.
Whatever your withdrawal
strategy, keep in mind that you should draw down your savings in a way that doesn't skew the
asset allocation in your nest egg away from your target by drawing too heavily on stocks or bonds.
They
do not represent performance of the above
asset allocation strategies or actual accounts.
The smarter response is to set an investing
strategy that jibes with your risk tolerance and investing goals (which you can
do with this risk tolerance -
asset allocation questionnaire), and then
do a periodic portfolio check - up to make sure you and your portfolio are still in synch.
Diversification,
asset allocation strategies, automatic investing plans and dollar - cost averaging
do not ensure a profit and
do not protect against a loss in declining markets.
«The reason you don't see a lot of money chasing long - term value
strategies, particularly
strategies like ours, is career risk,» said Ben Inker, GMO's co-head of
asset allocation...
My clients will receive the full details on this as an
asset allocation strategy, but my readers have enough from this that if you want to
do a little work you can figure this all out yourselves.
We began by borrowing from our Dynamic
Asset Allocation strategy the notion of applying momentum across risk categories rather than within them as we have always
done in Upgrading.
Being old fashioned, I gravitate to basics such as: — pay down all debt as quickly as is reasonably possible — broadly diversify across at least 5
asset classes — keep expenses low — its OK to have an advisor for their expertise in security selection but never give an advisor control over how your money is invested i.e. style,
strategy,
asset allocation — if you want to take a flyer on a hunch (and we all
do at some point) take the funds out of your core investment account and create a «satelite» account
If this
strategy is so simple, then why don't all investors use
asset allocation?
Graham Westmacott, my colleague at PWL Capital, has
done some compelling research that suggests the whole notion of moving from an aggressive portfolio to a more conservative one is flawed: in his analysis, even «the best possible glide path
strategy offers virtually no improvement» over a simple balanced fund that maintains a constant
asset allocation.
Schleef and Eisinger compare lifecycle
strategy with a number of fixed
asset allocation schemes in Monte Carlo simulations and conclude that a 70 % equity, 30 % long term corp bonds
does as well as all of the lifecycle funds.
From stocks to bonds to
asset allocation strategies, everything you read about is explained from the perspective of a new investor so you don't get bogged down with concepts and jargon you don't understand.
Whereas many pension plans at that time
did not appreciably shift
asset allocations away from equities towards fixed income and liability - driven investing
strategies, the firm argues pension plan behavior «should likely be different this time.»
The GAO report noted that each of the eight TDF managers it contacted «considered contribution rates in establishing its
asset allocation strategy,» noting that «some explicitly noted that these assumptions
did not match the general pattern of contribution rates.»
Even if another maelstrom reoccurs, this will be yet another opportunity for investors to achieve dramatically inferior portfolio performance, when they
do not have a well - defined long - term
asset allocation and re-balancing
strategy in place and when they
do not have the will to implement it consistently over time.
That being said, I don't think you need to exactly match the fund choices they provide, just research
asset allocation strategies and remember to adjust them as you get closer to retirement.
(Hint: If you're new at this, or you just don't have the time to critically evaluate individual stocks, you might want to consider using an
asset allocation strategy.)
Don't worry about getting this perfect, as your Rep more than likely had no clue how to use
asset allocation strategies when they sold you AFs in the first place.
Pure
asset allocation strategies using mutual funds as the funding vehicles, is just about the only investment
strategy that has the capability of
doing this.
Once they see what you're
doing, they'll leave you alone, because compliance prefers low - turnover
asset allocation using mutual funds (over the myriad of other harebrained investment
strategies everyone else uses).
DAA takes a totally different approach to
asset allocation than
does Upgrading (and most of SMI's other
strategies).
Investing
strategies, such as
asset allocation, diversification or rebalancing,
do not assure or guarantee better performance and can not eliminate the risk of investment losses.