“The cause of price movement in any given stock is predominantly a function of market and sector risk. More specifically, 80 percent of the risk in any given stock is attributable to the market and sector. Yet the typical time allocation for researching a stock is 80 percent to the actual stock and only...
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In a previous note, we introduced strategic and tactical asset allocation (SAA and TAA). They both face challenges for investors and planners alike. In this note we’ll introduce dynamic asset allocation (DAA). To start with, here is an excerpt from an article on Investopedia.com by Jason Van Bergen:
“Another active asset allocation strategy is...
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In this note we will introduce strategic asset allocation (SAA) and tactical asset allocation (TAA). The reference here is to the percentages that are allocated to fixed income (bonds), equity (stocks) and cash in a given portfolio. One can go a little further and overlay a geographical allocation among various economies. As portfolios grow,...
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