Why Sector Allocation Is Diversification Deficient

There are investors who build their portfolios around sectors instead of asset classes.  The following optimization shows why sector allocation comes up short when it comes to portfolio diversification.  As a reminder, asset classes cover all sectors, but sectors do not cover all asset classes.

[Read more...]

Einstein Portfolio Review: 7 March 2013

Major changes occurred in the Einstein Portfolio since the last update.  Gold or Precious Metals was added to the list of asset classes.  Mid- and Small-Cap Blend asset classes were sold and a Trailing Stop Loss Order (TSLO) is in position to eliminate Large-Cap Growth.  Those assets will be shifted over to Large-Cap Blend.  The new Strategic Asset Allocation plan is shown in the following screenshot.

[Read more...]