This is when an investor takes a multiple choice quiz and the answers they give determine their best asset allocation.
This phenomenon can be best managed through a dynamic asset allocation process rather than a pure passive approach.
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Logical thinkers feel that given all of the negative economic events we have experienced over the past 11 years and the bleak prospects for a sustainable future recovery, allocation to stocks is dangerous at best.
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Your best defense is to stay diversified and have an allocation strategy that is appropriate for your age and financial situation.
If you decide that a hands-off approach is best for you, ensure that your initial asset allocation investment strategy is appropriate for your risk tolerance and then commit to it, even in rocky times.
Unfortunately, Best Buy leadership confused short-term sales re-allocation with long-term trends.
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It would clearly be wrong for investors to scour the glossies for the hottest names and hand over their money they know best the risk they can live with and the asset allocation that goes with it.
Some believe such a system is fairer, allowing more parents to aspire for the best school for their child and leave fewer dissatisfied with their allocation.
Second, this rate of return is then matched to the expected returns of the asset classes to find the allocation in stocks, bonds, and cash that best fits the return requirement.
Your allocation between stocks and bonds should be designed to provide the best opportunity to achieve your goals, within the context of when you need the money.
Then fill in the allocation with low cost funds since low cost has been one of the best indicators of superior future performance.
The book examines a radical asset allocation strategy proposed about 25 years ago in an earlier book called Why the Best-Laid Investment Plans Usually Go Wrong by the late Harry Browne.
Chris said the allocation process was also a tough one, as he wanted the bands to have the best chance to shine.
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.
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Grouping the nation's patients and livers into fewer, larger regions might allow broader allocation without the risks of having to fly organs across the country (even with the best care, livers can last only half a day on ice).
The government says it has included an allocation for the scheme up to 2013 in its early intervention grant to councils and is consulting on how best to fund the free nursery places from then on.
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