Sentences with phrase «because with asset allocation»

Because with asset allocation, you're investing in so many «markets,» that you can not be investing at the top in all of them at the same time - because this never happens.

Not exact matches

Remember, you're already far better off than the vast majority of investors because you selected an asset allocation with your eyes wide open to its historical returns and volatility, so you can rest easily knowing that you made a well - educated decision.

With fully two - thirds of its money invested in domestic and foreign stocks, private equity and «absolute return strategies» (i.e., hedge funds), the New York State pension fund has a risky asset allocation profile typical of its counterparts across the country — because chasing risk is its only hope of earning 7 percent a year in a market where the most secure long - term bonds yield barely 2 percent.

Asset allocation works hand in hand with risk aversion because if an investor is more risk averse and wants to preserve capital they may decide to purchase a collection of various blue chip large cap stocks in addition to bonds and certificates of deposit so if any one sector or instrument drops significantly the overall portfolio isn't as negatively affected.

But because it's online you won't be able to discuss asset allocation with your classmates afterwards, over beers at the campus pub.

Also, the now mainstream investment becomes more correlated with risk assets generally, because the actions of institutional investors chasing past returns is common to much of what qualifies for asset allocation.

The Sleepy Mini Portfolio does not end up with a precise 20-20-30-30 asset allocation because the TDB900 requires a minimum investment of $ 100 but the amount to buy came out to $ 85.50.

A: Because the Motifs drift with changing market prices, and we want investors adding new money to get the intended asset allocations, we adjust the Motifs on roughly a quarterly basis.

Dynamic Asset Allocation (DAA) is also very easy and cost - effective to start with a small portfolio, although the commission costs incurred will be somewhat higher because DAA requires some trading throughout the year.

Because our asset allocation is closely aligned with the goal of providing steady (after inflation) long - term retirement income, longer - maturity Treasury Inflation - Protected Securities (TIPS) serve as the glide path's «risk - free» asset.

However, because Dynamic Asset Allocation and Just - the - Basics utilize exchange - traded funds (ETFs), which are priced on a per - share basis, it's possible to use either of these strategies with a relatively small amount of money.

With that combo, you're guaranteed to outperform most other investors with a similar asset allocation, because their results will be dragged down by their higher investment coWith that combo, you're guaranteed to outperform most other investors with a similar asset allocation, because their results will be dragged down by their higher investment cowith a similar asset allocation, because their results will be dragged down by their higher investment costs.

With age, however, asset allocations may shift toward safer investments such as bonds because retirement is getting closer and older investors should be more concerned about keeping what they have saved and gained.

Asset allocation is still worthwhile, even when positively correlated, because different classes with have different returns in different years, thereby smoothing portfolio returns.

The financial concept of asset correlation is important because the goal of asset allocation is to combine assets with low correlation.

This makes it an important part of asset allocation because the goal is to combine assets with a low correlation.

Employing such investment types can go hand in hand with a more simplified in - retirement portfolio strategy: Because broad - market index funds provide undiluted exposure to a given asset class (a U.S. equity index fund won't be holding cash or bonds, for example), a retiree can readily keep track of the portfolio's asset allocation mix and employ rebalancing to help keep it on track and shake off cash for living expenses.

I would have a difficult time applying a tactical asset allocation strategy with my portfolio because there are so many uncertainties that present themselves in the markets to allow for me to forge ahead with confidence.

It's because of the risk - return tradeoff — which says that potential return rises with an increase in risk — that diversification through asset allocation is important.

My thought with the bond allocation is to put it on auto - pilot as much as possible, and focus my efforts on generating alpha in the risk asset part of the portfolio.On a broader point, I think you are right about offering this, because I think most people are looking for a «total solutions» provider.

James Montier is incensed by the ubiquitous calibration of strategic asset allocation with «static» asset allocation because static allocation makes no accommodation for the fact that market valuations and commensurate expected returns fluctuate dramatically over time.

Because the SPDR SSgA Active Asset Allocation ETFs are actively managed, they are therefore subject to the risk that the investments selected by SSgA may cause the ETFs to underperform relative to their benchmarks or other funds with similar investment objectives.

Second - guessing your asset allocation decisions because they «aren't working» this year will cost you much, much more than you can ever add with a 2 % tweak here and there.

Works great with the asset allocation models because of the low fees and self - directed control.

You're probably going to pay a little more in taxes with asset allocation, because you're probably going to be making more income and profits.

The biggest reason for needing to classify someone into a pre-defined category, is because most investment advisors use Asset Allocation Models that correspond directly with each category.