The challenge for investors is deciding which asset classes to use in a portfolio.
Modern portfolio theory advocates blending asset classes to maximize expected return and minimize portfolio volatility.
It uses a wider array of asset classes, including municipal and corporate bonds and real estate.
Investors in other asset classes also focused on the outlook for potential tapering in coming meetings.
The data shows that active funds underperform without prejudice to asset classes, sector or style.
It also eliminates the behavioral cost created by moving money around within asset classes.
There are other asset classes available but three form the foundation for a solid portfolio.
Like most unique asset classes, the index has periods of outperformance and periods of underperformance.
We buy several types of equity and fixed income funds that span many different asset classes.
If historical correlations are low enough, we separate two indexes into different asset classes.
Next, assemble a portfolio with that level of volatility balanced across several different asset classes.
Munis are on course to be one of the best performing asset classes in 2011.
The book focused on access to alternative asset classes as the primary source of endowment alpha.
Or, that by avoiding asset classes that were depressed, they could prevent any future losses.
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Many investors select asset classes, strategies, managers and funds based on recent strong performance.
Should all asset classes be rebalanced or just the ones off by the most?
The second but no less important part of diversification is diversifying within an asset classes.
The other three asset classes are for appreciation: U.S. stocks, foreign stocks and hard asset stocks.
We use six different asset classes and a score of subsectors and categories.
Three asset classes are for stability: short money, U.S. bonds and foreign bonds.
Some firms have separate systems for different asset classes, such as foreign exchange, equities, and options.
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"The diversification offered by many alternative asset classes has been drastically reduced, " Mr. Gambera says.
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Their global macro strategies invest across not only the globe but across different asset classes.
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So some money flows are coming out of gold and into other asset classes.
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Thus, the best strategy is to continue to remain diversified, both among and within asset classes.
This is certainly not the ideal scenario when promoting the largest and deepest of asset classes.
In general, there will be extreme volatility and uncertainty in most asset classes across the board.
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Outside of gold Krugerrands, few other asset classes offered much in the way of protection.
Almost all asset classes that are offered as ETNs can be found as ETFs.
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