These investors have time on their side and to the extent the robo services have incorporated an IPS into their mix, there's little such clients need to do: if markets do sink a bit, they will be automatically dollar cost averaging their way
into equity exposure as the weeks and months proceed into the Trump era.
Can you imagine what would happen if everyone aged 25 - 41 suddenly invested
into equity exposure equal to twice their assets?
Not exact matches
Going
into 2017, Morgan Stanley recommended that investors lighten up on European
equities and shift
exposure into Japan, which was emerging from a long period of deflation.
The move to overseas
exposure is the opposite of what we saw in the fourth quarter, when the all - time high of $ 138 billion
into ETFs was concentrated in U.S.
equities.
More specifically, investors are putting their money to work in markets outside the U.S. Of the $ 97.2 billion of net new assets raised in the first quarter, over $ 70 billion went
into equity funds with international
exposure.
And as they do, U.S. investors should preferably gain that
exposure via instruments that seek to hedge the foreign currency impact, as dollar strength means
equity gains in local currency terms will be muted when translated back
into U.S. dollars.
Most Millennials are investing directly
into Target Date Retirement Funds which have high
equity exposure due to the long retirement horizon — so despite having grown up during two bear markets Millennials are still investing and believe in stock investing.
I take
into account the 20 %
equity exposure of the LS 20 % in my overall balance and I have periodically sold off the Index - Linkers to keep the portfolio asset allocation stable.
Net
exposure takes
into account the benefits of offsetting long and short positions and is calculated by subtracting the percentage of the Fund's
equity capital invested in short sales from the percentage of its
equity capital used for long positions.
This is very important to me as an investor in European
equities because current valuations do not appear to take
into account any earnings improvements among those European companies that have large
exposures within Europe.
Arts education today is more than instruction: it is also a barometer of our willingness as a nation to provide
equity through our public institutions.I applaud Rocco Landesman for bringing his important message directly to Secretary of Education Arne Duncan at their joint appearance at the Arts Education Partnership: «Arts
exposure is fine, but unless students are prepared for the art, unless teachers are integrating the art
into the student's overall learning for the year, it remains
exposure, not education....
International
equity ETFs also maintained their momentum with some investors switching out of Canada and perceived over-valued U.S. stock
exposures into EAFE and other developed global markets.
Therefore, it seems reasonable to keep a sizable
exposure to
equities even late
into retirement, while minimizing the risk in early years.
But when you take
into account the odds of making two correct timing trades — out now, in later, and the cost of the taxes on my taxable account, the incentives for reducing
equity exposure now look poor.
The majority of the $ 700 million flowing
into the
equity segment during the month was invested in international and U.S.
exposure ETFs, many of which outperformed their Canadian counterparts, according to Bloomberg data.
They assign these portfolios to a framework that translates diversification, fundamental weighting and factor investing
into core
equity exposure and style investing (see the figure below).
Having high %
exposure into Japan and Europe makes Aberdeen Islamic World
Equity Fund the preferred Shariah compliant fund for our 2017 investment portfolio.
In mid-March, ISI Total Return U.S. Treasury Fund (TRUSX) and North American Government Bond Fund (NOAMX, which had 15 % each in Canadian and Mexican bonds) reorganized
into Centre Active U.S. Treasury Fund (DHTRX, which has no such
exposure to explain its parlous performance); ISI Strategy Fund (STRTX, which holds a 10 % bond stake) merged
into Centre American Select
Equity Fund (DHAMX, which doesn't but which still manages to trail STRTX, its peers and the S&P 500); and, finally, Managed Municipal Fund (MUNIX, which was also a substantial laggard) was absorbed by Centre Active U.S. Tax Exempt Fund (DHBIX).
That said, our picks include both ETFs that provide both direct unhedged
exposure to foreign
equities, as well as some that hedge back
into the Canadian dollar (but all still trading on the TSX).
Even worse is this WSJ article, where the author is giving
into his fears, and reducing
equity exposure.
At your age I would increase my bond
exposure to 20 %, leave 80 % in
equities to capture as much of the upside as possible, and invest any new money
into bonds until either it reaches its target or a specified amount of time has passed (ie give 2 years for
equity recovery then rebalance).
The U.S. and foreign
equity exposure is not currency hedged but foreign fixed income is hedged back
into the Canadian dollar.