Category Archives: Asset Allocation
Hedge funds and CTAs have struggled in recent years due to rapid decline in the supply of dumb money. When the current transition period ends and new strategies are fully deployed, only those who are prepared for the coming war … Continue reading
Despite the outperformance year-to-date, which may be related to U.S. dollar weakness for the most part, international stocks have consistently underperformed U.S. stocks in the last 22 years. Unless there is a well-documented paradigm change, a switch to those markets … Continue reading
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