Consider what happened to investors who abandoned their strategic asset allocations in the crisis.
Some had set their asset allocations at a previous point and never revisited the mixture.
In that interview, Booth said that asset allocations to the emerging markets are much too low.
Advisers routinely overuse past information to predict future optimal asset allocations for retail clients.
Individual countries are still vulnerable to fund managers adjusting their asset allocations within the region.
For others, commission-free ETFs may lead to increased tinkering with asset allocations, to the detriment of long-term returns.
Since consultants recommend asset allocations and money managers (and frequently push specific managers), consultants have tremendous influence regarding overall fund performance.
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This study merely concluded that based on how these investors behaved, 90% of their returns were derived from their asset allocations.
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Crafting portfolio asset allocations is a combination of art and engineering.
But, paying attention to asset allocations will help lessen the blow.
Right now, BlackRock boasts attractive asset allocations across the firm.
Funds should review their asset allocations, not only in light of current market realities, but also for purposes of determining whether consultant conflicts may corrupt the integrity of the process whereby asset allocation is determined.
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Thus, while calendar-based stock market indicators can make higher beta (more volatile) stocks or lower beta (less volatile) stocks appear more attractive over the short term, these indicators should not be used to adjust your overall asset allocations.
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The numbers in the charts below certainly support long-term stock market participation and argue that Ms. Kunis and others of her cohort should give much greater consideration to upping the equity exposure for money that is truly part of their long-term asset allocations.
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Tactical asset allocation attempts to achieve superior portfolio returns over a fixed allocation by varying the allocations among asset classes in a timely manner.
When stocks are overvalued fundamentally and overbought technically investors should be reducing allocations to this asset class on strength to risky levels.
Rather, they hold fixed allocations in several asset classes using low-cost index funds or exchange-traded funds (ETFs) and rebalance their portfolios back to a target as needed.
As a result, these investors may want to revisit their utilization of commodities, including gold and other precious metals, and feel comfortable with their existing investment allocations to this asset class.
Money manager Dwight Asset Management, for example, now is considering changes in its asset mix, such as boosting allocations to government securities, "to appease the demands of some of the wrap providers, " says Matt Gleason, head of stable value.
It should be noted that our November Asset Allocation Survey showed AAII members increased their allocations to stocks and stock funds for the fourth consecutive month.
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Hough laid out the steps for creating a sensible asset allocation, selecting index funds to fill the allocations, and rebalancing occasionally to control risk.
For instance, when analysts began to report that university endowments performed better with a focus on longer term asset classes (the David Swensen approach), fund allocations followed the learning.
Cash allocations were at 21.5% in our June Asset Allocation Survey, the highest levels since August 2010.
Individual investors increased their allocations to stocks last month, according to the October AAII Asset Allocation Survey.
Individual investors decreased their allocations to equities last month, according to the March AAII Asset Allocation Survey.
Stock and stock fund allocations rebounded to a three-month high in the July AAII Asset Allocation Survey.
Stock and stock fund allocations fell to a seven-month low according to the May AAII Asset Allocation Survey.
Individual investors kept their portfolio allocations to equities essentially unchanged last month, according to the latest AAII Asset Allocation Survey.
Individual investors modestly increased their allocations to stocks and stock funds last month, even as cash allocations rose to a three-month high, according to the March AAII Asset Allocation Survey.
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They had been disillusioned by poor returns (what would an optimiser have said about property allocations in 1990?) and by the difficulty of dealing with such an illiquid asset.
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