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Monday links: asset allocation magic

Abnormal Returns

Strategy There's nothing magic about asset allocation. obliviousinvestor.com) Do stocks really become less risky over the long run? morningstar.com) Companies Google ($GOOGL) is investing $2 billion in AI player Anthropic. axios.com) Pharmaceutical companies are getting out to the consumer product business.

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Dynamic Asset Allocation

Truemind Capital

Simply, by applying a dynamic asset allocation plan – increase equity allocation when equity gets cheaper and reduce equity allocation when it is expensive compared to historical standards. Many investors do not realize the importance of asset allocation which contributes 80% of the outcome of the overall return.

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When Should You Change Your Asset Allocation?

A Wealth of Common Sense

A reader asks: My question is how does asset allocation strategy change with your net worth? For example, should someone of the same age with $10 million in net worth have the same allocation as someone with $1 million? These huge pools of capital liked to call themselves “sophisticated” invest.

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The Bond Bear Market & Asset Allocation

A Wealth of Common Sense

I’m generally not a fan of completely rethinking your asset allocation just because you wish you would have invested in something else with the benefit of hindsight. Fighting the last war can be a damaging strategy if you’re constantly investing in the rearview mirror based strictly on performance.

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Episode #530: GMO’s Catherine LeGraw – Capitalizing on Global Asset Allocation in 2024

Meb Faber Research

Guest: Catherine LeGraw is a member of GMO’s Asset Allocation Team. ” She […] The post Episode #530: GMO’s Catherine LeGraw – Capitalizing on Global Asset Allocation in 2024 appeared first on Meb Faber Research - Stock Market and Investing Blog.

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Importance of Sticking to Asset Allocation

Truemind Capital

People get conditioned to this pattern and over-allocate in the asset class out of greed and by overlooking/undermining the risk factors. One of the biggest mistakes people commit is ignoring their risk profile and suitable asset allocation, especially during runaway prices in one asset class.

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How Should You Choose Your Asset Allocation?

A Wealth of Common Sense

Following up on last week’s question about when to change your asset allocation, a reader asks a logical follow-up: For the average investor who is looking to do a mix of stocks/bonds, should they use some simple heuristic for bond allocation, such as bond% = 10 x interest rate, up to a max of 50%?