Monday, November 19, 2012

Investment Strategies: Asset Allocation

This is the time tested investment model - decide on an Asset Allocation model and stick with it except for periodic re-balancing. I follow this model for my two largest accounts - ElGreco and VanGogh. More than half of the investment capital in my control follows this model.

I start with a basic Equity-Bond allocation - currently typically 70% Equity and 30% Bonds. I, then, further divide each into several low cost options including Index Funds. Equity is divided into US Equity, Non-US Developed World and Developing World. Bonds are divided into Corporate Bonds and US Treasuries.

I re-balance the portfolio into the benchmark asset allocation ratios once every three months. The asset allocation accounts are performing well this year - in line with the overall market doing well.

Botticelli, The Birth of Venus

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