Sentences with phrase «reduce exposure to the asset class»

Why reduce exposure to the asset class that's on a multi-year hot streak when we know that rebalancing can lower returns in trending markets.

Reduce your exposure to the asset classes that have appreciated the most.

Not exact matches

My argument here is that the ability to broadly diversify equity exposure in a cost - effective manner reduces the excess return that equities need to offer in order to be competitive with safer asset classes.

Diversification: The process of investing in a way that reduces exposure to any single asset or asset class to reduce overall risk.

Diversifying with international corporate bonds can potentially reduce exposure to market variations of a single currency, issuer, and asset class.

If you choose not to prepay, you can invest in other asset classes and thereby reduce your risk of exposure to a single asset class.

Unlike static procyclical indexing strategies (which just go up and down with the market and always rebalance back to the same risk exposure) our countercyclical approach rebalances in such a way that we will actually reduce exposure to certain asset classes when the risk of permanent loss increases late in the market cycle.

You also need to diversify your holdings within those asset classes and hold, in the case of a stock portfolio, a variety of stocks — from risky to less risky, in different currencies, in different industries — to reduce your risk exposure.

Discusses the potential benefits of tactical investment strategies by increasing and reducing exposure to various asset classes at different times in an attempt to enhance potential returns and reduce the impact of short - term fluctuations.