Portfolio Diversification

This morning a link to the following Seeking Alpha article showed up in my e-mail box.  ITA Wealth Management readers know the importance of diversification and our mature portfolios include the five asset classes mentioned, and many portfolios include all six.  While the article advocates diversification, readers need to be aware that the graph is showing data that was "manipulated" under the term, Tactical Asset Allocation (TAA).  Exactly how the TAA was applied is not revealed.  While the underlying thesis of the article is sound, the graphical results would be hard to duplicate going forward.  Read the article with that reservation in mind.

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Review of John Bogle Book

Larry Swedroe, one of our favorite investment authors, writes a brief review of John Bogle's latest book.  Click here to see this review.

Asset Allocation Changes

Waterford, Virginia

With the broad market hovering as high as it is, now is a good time to take a careful look at the asset allocation plan for each portfolio.  If one needs to rebalance and sell over allocated asset classes, now is the time to make those adjustments.  I am looking at a number of portfolios, particularly when it comes to the equity/bond ratio.  In taxable accounts, I prefer to be under allocated in bonds vs. over allocated.

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