why the traditional asset allocation model fails
DESCRIPTION
The traditional asset allocation model is not always the best way to grow your portfolio. Knowing which sectors of the market are in favor is more helpful.TRANSCRIPT
Mullooly Asset Management September 2013
Why the Traditional Asset Allocation Model Fails
Mullooly Asset Management PodcastSeptember 11, 2013
Mullooly Asset Management September 2013
Asset Allocation Means Pie Charts
The tool of most financial planners
Utilize the traditional 60/40 portfolio
Mullooly Asset Management September 2013
Traditional 60/40 Portfolio20% Large Growth stocks/funds15% Mid-Cap stocks/funds15% Small Cap stocks/funds
10% International/Emerging Markets
20% Fixed Income/Bonds20% Cash/Money Market/Other
Mullooly Asset Management September 2013
Problems
Past 12 years, small-caps have been the best performers
Large-cap have lagged for most of last 12 years
Fixed Income now looks to carry more risk
Cash/Money Market yields zero
Mullooly Asset Management September 2013
Why Traditional Asset Allocation?
Most advisors do not know which sectors are doing well
They would rather spread around your dollars and the risk
Mullooly Asset Management September 2013
None of the securities mentioned in this (or any) podcast or video represent past specific recommendations of Mullooly Asset Management.
This video is NOT a recommendation to buy or sell any of the securities mentioned here.
If you’re relying on a podcast for investment advice, you are likely making a huge mistake.
We strongly urge our listeners to consult with their investment advisor before they make a decision to buy or sell any investment.
Mullooly Asset Management September 2013
Mullooly Asset Management, LLC
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