Remember, the goal of an index fund is to deliver the returns
of a particular asset class, as measured by an index.
What about the prospects
of the particular asset class?
Banks are definitely selling commercial loan notes left and right to private investors, even sometimes in cases where the notes ARE PERFORMING, if the bank has a need (reducing required regulatory capital, regulatory pressure, Board mandates, etc.) to divest
themselves of a particular asset class.
Not exact matches
Grantham is also bullish on two
particular asset classes — farmland and forestry — based on the simple argument that «they don't make any more
of it» and we need land to grow food.
The level
of risk associated with a
particular investment or
asset class generally correlates with the level
of return the investment or
asset class might achieve.
It may be somewhat useful to make comparisons to that period
of time to see how certain interest rate sensitive
asset classes such as junk bonds, REITs, dividend - paying stocks or bonds performed, but my guess is that
particular environment doesn't do a great job
of showing investors what a typical rising rate scenario would look like (assuming there is such a thing).
Many times, this results because one
particular asset class or investment has advanced substantially, coming to represent a significant portion
of the investor's wealth.
Although decades
of history have conclusively proved it is more profitable to be an owner
of corporate America (viz., stocks), rather than a lender to it (viz., bonds), there are times when equities are unattractive compared to other
asset classes (think late - 1999 when stock prices had risen so high the earnings yields were almost non-existent) or they do not fit with the
particular goals or needs
of the portfolio owner.
Examples
of sub-groups are investors with the majority
of their capital allocated to a
particular asset class or geography.
So you consistently look at your overall portfolio and the mix
of asset classes that you have in that
particular account to make sure that you continue to harvest losses so those losses will offset future gains as you're trying to create income.
Within a futures market, an investor is able to trade futures contracts, which involves the purchase
of an
asset class at a
particular price with a settlement date set at some point in the future.
With the exception
of bonds, all
of these
assets classes showed significant volatility: emerging markets, REITs and real - return bonds in
particular.
He's also a great example
of someone who knows he might not be the smartest person in the room when it comes to a
particular asset class... and acknowledges the value
of building a great team to fill in the details.
One
asset class might outperform during a
particular period
of time, but historically, no
asset class will outperform during every period.
William Bernstein wrote about the phenomenon in 2001 article, Dunn's Law Review: The Life and Times
of «Core and Explore,» in which he noted, «[T] he fortunes
of indexing a
particular asset class depend on its performance relative to other
asset classes.»
3) In
particular, all
of the newer
asset classes have short histories.
You and your family's
particular tolerance
of or aversion to investment risk drives your long - term
asset allocation strategy and your exposure to
asset classes with different expected risk and return characteristics.
A narrowly focused ETF also tracks an index, but one that concentrates on a
particular sector or the market or subset
of an
asset class.
An investment in a
particular asset class is an investment in an
asset that exhibits a certain set
of characteristics.
A tactical
asset allocation strategy calls for investing an array
of percentages in every
asset class, meaning you can increase your distribution in a
particular category when the stocks are expected to perform well and decrease it when they're projected to perform poorly.
Some investors may get around this by purchasing different ETFs within the same
asset class with new contributions, in order to have more
of a chance to realize losses on that
particular security (that they can use to offset gains when they rebalance their portfolio).
Grantham is also bullish on two
particular asset classes — farmland and forestry — based on the simple argument that «they don't make any more
of it» and we need land to grow food.
There are plenty
of ETFs available, and besides covering major indices, they cover different sectors
of the equity markets, different
asset classes (such as Fixed Income and Alternatives), specific sectors and industries, different currencies,
particular market niches as well as several different strategies (such as long and / or short ETFs).
Predicting when that turning point will be, just as forecasting when the turning point in the price momentum
of a
particular stock or
asset class will arrive, is no easy task.
In the case
of a tax loss sale, an investment is sold and a new investment is purchased to replace the investment in that
particular asset class shortly after.
There are at least three ways
of doing that: making bets that the market or
particular sectors or securities will fall (long / short equity), shifting
assets from overvalued
asset classes to undervalued ones (flexible portfolios) or selling stocks as they become overvalued and holding the proceeds in cash until stocks become undervalued again (absolute value investing).
In addition to the strategic annual adjustment
of each fund's target
asset allocation, the adviser may adjust each fund's underlying fund allocations within a
particular asset class based on the following considerations: market trends, its outlook for a given market capitalization, and the underlying funds» performance in various market conditions.
There is a push - pull in the art market where value often comes from works
of art trading with exceptional infrequency even as the fact
of repeated sales
of art in general and an artist's work or even a specific work, in
particular, gives buyers greater confidence in art as a store
of value (or an
asset class.)
This is particularly the case for livelihoods and households that have limited
asset flexibility and / or those that experience disadvantages and marginalization due to gender, age,
class, race, (dis) ability, or being part
of a
particular indigenous or ethnic group.
It is relatively easy to condemn an
asset class or a
particular stock with basic arguments like the lack
of intrinsic value and speculation in the market.
As Futurism explained it, any investor who puts their money into the index fund will be betting on an
asset class — cryptocurrency as a whole — versus any
particular coin as has been the method
of many day traders.
explained it, any investor who puts their money into the index fund will be betting on an
asset class — cryptocurrency as a whole — versus any
particular coin as has been the method
of many day traders.