Third, a fixed allocation to different index funds beats trying to time the markets and always has.
This approach is more proactive than standard rebalancing to a fixed allocation.
Tactical asset allocation has a higher maintenance cost than a fixed allocation and this puts the strategy at a disadvantage from the start.
Tactical asset allocation attempts to achieve superior portfolio returns over a fixed allocation by varying the allocations among asset classes in a timely manner.
Asset class rebalancing is used to return a portfolio back to its fixed target allocation.
Some, such as Fidelity's Asset Manager funds and Vanguard's LifeStrategy Funds, maintain a fixed asset allocation over time.
Rebalancing keeps a fixed asset allocation aligned with its target mix.
These portfolios are occasionally rebalanced to maintain a fixed asset allocation.
These low-cost funds, coupled with a fixed strategic asset allocation based on needs, create a high probability solution for nearly every investor.
This is the highest allocation to fixed income since the survey started in November 1990.
At the same time, the optimism is cautious, which explains the comparatively high allocation to fixed income.
This was the lowest allocation to fixed-income securities and funds since February 2011.
You could limit the short-term roller coast risk by deciding to always have a big allocation of fixed income.
One of the simplest and most effective ways to manage daily stock market volatility is to have an allocation to fixed-income.
This is the smallest allocation to fixed income since February 2010.
This is the lowest allocation to fixed-income since October 2011.
FORBES: Investors Go Heavy On Stocks, Cash, Lighten Up On Bonds
As of its last public disclosure on this score, it had a modest 16% allocation to fixed income, consisting of 7% in inflation-indexed bonds, 4% in corporates and the rest in high-yield and foreign debt.
"The cleanest example is someone who wants to retire early and had a pension plan but they don't want to start receiving pension payments, " says Boyce Greer, president of Fixed-Income and Asset Allocation, Fidelity Investments.
This cash flow has motivated investors to rebalance their fixed income holdings with a higher allocation to common stocks.
One of our major focuses is capturing more flows in the postretirement sector, where fixed income will be a critical part of that asset allocation.
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If your goal is to maintain a 40% allocation to bonds and, due to market movements, fixed income now accounts for 50% of your portfolio, changes may be required.
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