why the traditional asset allocation model fails

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Why the Traditional Asset Allocation Model Fails Mullooly Asset Management Podcast September 11, 2013 Mullooly Asset Management September 2013

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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

Page 1: Why the Traditional Asset Allocation Model Fails

Mullooly Asset Management September 2013

Why the Traditional Asset Allocation Model Fails

Mullooly Asset Management PodcastSeptember 11, 2013

Page 2: Why the Traditional Asset Allocation Model Fails

Mullooly Asset Management September 2013

Asset Allocation Means Pie Charts

The tool of most financial planners

Utilize the traditional 60/40 portfolio

Page 3: Why the Traditional Asset Allocation Model Fails

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

Page 4: Why the Traditional Asset Allocation Model Fails

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

Page 5: Why the Traditional Asset Allocation Model Fails

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

Page 6: Why the Traditional Asset Allocation Model Fails

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.

Page 7: Why the Traditional Asset Allocation Model Fails

Mullooly Asset Management September 2013

Mullooly Asset Management, LLC

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www.mullooly.net