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Focus On Asset Allocation: It Is A Lever That Is In Your Hands

October 25, 2010
by Jack Reynolds

Common Stock — Generally
Investors cannot control the investment climate, but can adjust their asset allocation. The Wall Street Journal reports that pension plans cut stock exposure from 70% in 2005 to 45%, and that individuals continue to reduce their stocks.

Cash/money markets yield little, and how much can bonds rise in value, given current interest rates. Bond values rise as interest rates fall, and rates do not have far to fall. In embracing alternative assets implementation is critical; guidance and the very best advice are essential.

Emerging Markets
Long-term emerging markets equity exposure is vital, but asset flows into emerging markets equities have been positive every month in 2009 and 2010, save two months with small negative flows. Source For some investors it may be wise to be patient, buying on weakness. Wall Street Journal

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