An asset allocation strategy that involves adjusting a portfolio to take advantage of perceived inefficiencies in the prices of
securities in different asset classes or within sectors.
Not exact matches
Portfolio diversification: Investing
in different asset classes and
securities to reduce overall risk;
Our conversation took us through the
different types of factors: macro factors that drive the level of returns for
asset classes, and style factors that drive the differences
in return among individual
securities within an
asset class.
If you want the same
security in the TFSA, you'll need to wait at least 30 days before repurchasing it
in order to avoid the superficial loss rules, or buy a similar
security (many ETFs serve an almost - identical
asset class) or buy an entirely
different new
security.
Diversification is usually mentioned
in relation to an
asset class or owning a multitude of
different securities.
The Great Recession affected
asset classes in different ways as riskier
securities (e.g. those, which were more leveraged) were sold off
in large quantities, while simpler
assets, such as U.S. Treasury Bonds, became more valuable.
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).