Meanwhile, I was unhappy to see GM cut its sector allocation to equities from 28 percent in 2009 to 14 percent last year.
In these four periods of rising rates, managers had the acumen to navigate troubled waters by various techniques of managing bond types, sector allocation, duration, maturity, credit quality, country, and currency.
That was likely to escalate unless ELWa reviewed its proposed funding allocation for the sector, which had been frozen for 2004-5.
Other common names for market timing include opportunistic investing, sector rotation, active asset allocation, top-down allocation, bottom-up allocation, global modeling, algorithmic positioning, defensive investing, and the list goes on.
Other spending heads will face the same squeeze as all those public sector workers if their cash allocation flat-lines - 4 to 5% this year, maybe down below 3% next year, but still requiring a deeper real terms cut than officially recognised by the 2.9% inflation rate currently assumed by the Office of Budget Responsibility.
Armed with index funds and strategies like sector rotation, relative value and tactical asset allocation, these advisers all attempt to earn their keep by beating benchmarks net of fees.
Higher co-pays and deductibles in government health insurance push consumers to balance costs and benefits in deciding how much health care to consume, improving the allocation of resources in the health sector.
FORBES: There's Only One Way to Avoid a Fiscal Meltdown: Cut Spending
Governments have to tax the private sector in order to spend, but taxes distort the allocation of resources in the economy.
FORBES: Data in New World Bank Report Shows that Large Public Sectors Reduce Economic Growth
The specific and sector risks are diversifiable if you pay attention to your overall asset allocation and the position sizes in these dividend-payers as well.
FORBES: 5 Monthly Paying Dividend Stocks With Attractive Yields
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.
WSJ: Pimco's Guiding Asia-Pacific's Investor Evolution: Ki Myung Hong
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