Mr. O'Higgins said his lack of confidence in the economy has forced him to pare his stock allocation to about 25% of the portfolio.
For example, a portfolio that is allocated to 60 percent in stocks and 40 percent in bonds might be rebalanced when the stock allocation rises to 65 percent or drops to 55 percent.
For those investors who want some exposure to foreign stocks, Bogle recommends an investment of no more than 20 percent of your total stock allocation, divided equally, into two Vanguard funds: Developed Markets Index Fund and Emerging Markets Index Fund.
Both the pathetic 13% participation rate and alarming 44% company stock asset allocation are facts well-known to the sponsor of the plan which, if it cared about worker preparedness for retirement, the sponsor could have done something to address.
This year our investing theme is not so much asset-allocation but stock-picking.
This hypothetical individual maintains a 75% stock and 25% bond allocation their entire working life.
Figure 1 is an illustration of rebalancing using a 50% stock and 50% bond allocation.
The average allocation to company stock rose 3.7 percentage points to 18.6% in 2009.
He gained fame in 1986 for coauthoring a paper pointing out that asset allocation, not stock picking, is the engine of portfolio performance.
Second, in order to recognize the losses, you must not acquire the same or a substantially identical security within 31 days before or after your sale. (This is known as the wash sale rule.) The sale of part or all of your stock portfolio changes your asset allocation.
The rising allocation to stocks and stock funds confirms what we have seen in our sentiment survey.
In fact, you can get the entire world stock market roughly in its current allocation simply by buying two exchange-traded funds (ETFs).
There are reasons to tilt your asset allocation, but the stock-picking expertise of a mutual fund manager is rarely one of them.
The increased allocation to stocks and stock funds is not surprising.
FORBES: AAII Asset Allocation Survey: Investors Continue To Bulk Up On Equities
According to the January AAII Asset Allocation Survey, stocks and stock funds accounted for 63.5% of individual investor portfolios.
One of the simplest and most effective ways to manage daily stock market volatility is to have an allocation to fixed-income.
Individual investors put 60.5% of their portfolio dollars in stocks and stock funds according to the latest AAII Asset Allocation survey.
The intent of this methodology is to adjust your stock holdings back to your long-term allocation targets, not to increase or decrease them beyond those targets.
Individual investors held 50.9% of their portfolios in stocks and stock funds according to the May 2010 AAII Asset Allocation Survey.
As they approach retirement they increase the bond allocation, as a safeguard against the stock market crashing just before they need the money.
My investment theme continues to be that investors should be raising cash on stock market strength until they have a 50% maximum allocation to stocks.
FORBES: Short The Market With These Six Exchange-Traded Funds
As part of a bond investing strategy one should seek to switch out of a high allocation of bonds and into stocks when the stock market reaches a capitulation phase.
FORBES: A Haven From A Eurozone Crash: Investment Grade Bonds
This is why you should be more concerned with maintaining proper asset allocation than trying to determine what the hot stock of the day is or when the best time to get in and out of stocks is.
FORBES: You May Have To Rebalance Your Portfolio Due To Health Care Costs
Individual investors increased their stock and stock fund holdings last month, according to the April AAII Asset Allocation Survey.
Individual investors held 52.9% of their portfolios in stocks and stock funds last month, according to the June 2010 AAII Asset Allocation Survey.
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.
FORBES: Bullish Sentiment Stays Strong, Investors Expect Higher Retail Sales This Season
Cash holdings reached their highest level since June 2010 as investors moved money out of stock and bond investments last month, according to the October AAII Asset Allocation Survey.
She prefers stock-picking (especially in the banking and telecommunications sectors) to asset allocation as the way to good returns.
Stock and stock fund allocations rebounded to a three-month high in the July AAII Asset Allocation Survey.
Jankowski notes that her September upgrade of the stock had been motived by expectations for improving LCD glass fundamentals and shareholder friendly capital allocation moves.
FORBES: Corning: Goldman Cuts Rating; Sees Q1 Below Consensus
应用推荐