The traditional stock /
bond allocation decision we've been looking at here is an obvious one.
Not exact matches
Meanwhile,
bond markets are concentrating as key participants, such as asset managers, shrink in number but expand in size.8 As a result, market liquidity may increasingly come to depend on the portfolio
allocation decisions of only a few large institutions.
I knew that asset
allocation — the mix of stocks,
bonds, real estate and other asset classes in a portfolio — is one of the most important
decisions an investor will ever make, so I really wanted to get it right.
Suddenly, an investor's asset
allocation decisions are not simply between earning nothing in cash and earning something in
bonds or stocks.
One of the most important
decisions investors will ever make is their asset
allocation — the percentage of stocks,
bonds, cash and other asset classes in their portfolio.
Tom presents Caution: Don't Always Invest Based on Others Predictions posted at StupidCents, saying, «The most important
decision when it comes to you investments should be asset
allocation, or the
allocation of your portfolio to stocks and
bonds.»
The most important
decision when it comes to you investments should be asset
allocation, or the
allocation of your portfolio to stocks and
bonds.
That said, lower projected returns from
bonds and their diminished ability to generate high offsetting returns have important implications for downside risk and the asset
allocation decision.
The fund will make asset
allocation decisions based on two driving factors: the 200 day moving average for the S&P 500 index as well as the
bond yield curve.
You must also be able to make your own
decision regarding the
allocation of your investments among stocks and
bonds.
The team can also show you how to fix them and even let you weigh in financial
decisions for stock and
bond allocations you are comfortable with.
In contrast, a tactical asset
allocation decision to raise cash makes it possible to acquire shares of stock or
bond ETFs at lower prices in the future.
Is there ever a place for active management in
bonds, in alternative investments or maybe just in asset
allocation decisions?
Investors that ask that question are usually trying to compare and contrast investments in different asset classes (stocks,
bonds, commodities, life insurance, real estate etc) to make an
allocation decision.