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Safeguarding Your Asset Allocation

Monday, October 21, 2013 - 1:04 PM
Really basic, fundamental information regarding managing a portfolio; it's
a little bit surprising so many are unable to stick with it.

    "The average investor underperforms his/her own funds due to jumping back
     and forth between them at exactly the wrong times. In other words, most
     people would have better investment performance if they simply crafted
     an asset allocation, chose some funds to implement that allocation, then
     stayed put."

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5
cumuluscumulus364 posts since
Jan 16, 2010
Rep Points: 1,706
1. Monday, October 21, 2013 - 1:36 PM
"I don’t check my portfolio balance more than once a month, and I never check the market’s daily performance. I find that it’s much easier to avoid worrying about a bad day in the market when you don’t even know that it happened."

I used to think that this (tuning out market news/condition) is the best way to stay the course.  (1) It does not work; it is human to check how your portfolio performs, (2) It does not help: In a bull or bear market trend, one really has to be aware of the real situation and do something accordingly.  Thus, I believe that it is another blinding concept that the traders want the majority of the public to adopt so that they can reap most of the benefits of tactical strategy. 

I do not think that "timing the market" works well; but gradual adaptation to the market trend is prudent to limit losses as well as to maximize gains. 
5
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
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