Category Archives: Asset Allocation
The correlation between the 60/40 strategic allocation and the equity market in the last 30 years is close to 0.9. Actually, portfolio risk, as measured by maximum drawdown, has only been low during strong equity market uptrends.
Using a forex strategy in tactical asset allocation offers potential of better diversification and improved performance during bear equity markets but any benefits from this allocation scheme must be weighed against known and unknown risks.
Many financial advisers think that European stocks will outperform U.S. stocks. Evidently, they are talking about a forex bet.
Everyone in financial media is now talking about Vanguard and how it controls more than 80% of the money invested in index funds. Have investors forgotten the recent brutality of the stock market or are they just convinced that another … Continue reading
Despite record outflows in 2016 and even a dose of the usual negative publicity, hedge funds have done well and the industry is looking forward to more growth. Based on performance data since 1977, hedge funds have outperformed the S&P … Continue reading
The Price Action Lab Diversified portfolio ended the year with a gain of 9% and ranked second best among 29 well-known portfolios.