Posts filed under “Asset Allocation”
Source: JP Morgan
Whenever anyone asks me about my favorite sector or market for the coming year, I like to show the table above. While not quite a quintillion-to-one bet, the table reveals what a challenge it is to consistently identify the best asset class for the coming year. No one seems to be able to do it regularly.
The recognition of that truth hasn’t stopped anyone from trying, as noted in the Bloomberg News story earlier this week: Hedge Funds’ Assets Increase 17% to Record $2.63 Trillion. Hence, the romancing of alpha continues even if it means forsaking beta.
Yesterday, Business Insider posted a huge piece, wherein they ask various folks for their best idea for a decade. With the low key headlne, Wall Street’s Brightest Minds Reveal Their Best Investment Ideas For The Next Decade, here is how I responded: Financial planning: “As it turns out, that is an easy question: Our own…Read More
10 financial resolutions you can actually keep By Barry Ritholtz Washington Post, December 29, 2013 It’s that time of year, when many people resolve to be better: Gotta lose 20 pounds, stop smoking, start exercising. Human nature is such that come January, there will be a 20-minute wait for the elliptical machines in…Read More
How much cash should you hold in your portfolio? By Barry Ritholtz, Washington Post December 13, 10:19 AM When people discuss their investing portfolios, they typically refer to the stocks, bonds, commodities and real estate they hold. The conversation might also include model weightings, tilt toward and away from different asset classes, and rebalancing….Read More
> My Sunday Washington Post Business Section column is out. This morning, we look at the question of How much cash should you hold in your portfolio?. This is yet another column that looks like its about investing but really is about psychology. As I noted prior, people have been sitting on big piles…Read More
Josh here – the other day I did a post about the amazing complexity and obsession with tail risk that’s caused so many professionally-managed investment pools to miss the market over the last few years (see: I don’t understand). Every general fights the last war, as they say, and a portfolio geared toward having a…Read More
Source: Capital Spectator The most perplexing thing I read this week was an odd column by Paul Merriman at MarketWatch, “Why Rebalancing Could Be a Huge Mistake.” He makes the counterintuitive claim that portfolio rebalancing doesn’t really work: “Conventional wisdom holds that regular rebalancing is a sound practice to control investing risk. But…Read More
Robert Arnott is Chairman ＆ Chief Executive Officer of Research Affiliates, a global leader in smart beta and asset allocation strategies, and one of the originators of fundamental (as opposed to market cap weighted). His models now drive over $100 billion in assets in various funds, and an additional $75 billion at PIMCO. ~~~ …Read More