The magic of proper asset allocation and re-balancing. Is it time?

Albert Einstein called compound interest the eighth wonder of the world. It would be a greater wonder if it is combined with proper asset allocation and rebalancing, . Proper asset allocation? A 50/50 portfolio is a good example. Fifty percent of it would be made up of the US stock market as represented by the […]

How to optimize your asset allocation for best results

Two facts here: Investing in the market in the short term is risky. Investing in the market appropriately in the long term is safe and effective. Holding cash in the short term is safe and effective. Holding cash in the long term is risky – guaranteed loss of purchasing power. Now, the details: We frequently […]

Better asset allocation leads to improved portfolio.

  On January 15, 2018, we wrote about a new year’s resolution suggesting that deciding on an asset allocation would be worthwhile. As your mindset becomes increasingly aligned with the MMM approach to investing, you will see that there is no such a thing as a bad year. When markets tank, as they regularly do, […]

Asset allocation, the Monday Morning Millionaire way

As promised in our June 30 post, we describe the Monday Morning Millionaire approach to asset allocation. You will not find a more straightforward way, or any evidence that the more complicated versions are more effective. Investors would benefit from having an appropriate asset allocation underlying their core portfolios. We first wrote about asset allocation […]

The Motley Fool on asset allocation

Several of our members are enthusiastic about the Motley Fool. You can see the Motley Fool take on asset allocation below the line, precisely as they updated it on Jul 17, 2021. Respected investment experts agree that asset allocation is the most critical consideration for portfolio performance. Quoting David Swensen “…asset allocation accounts for the […]

Effective, evidence-based management of what intelligent investors can control. Article 2. ASSET ALLOCATION

Stock-picking is a much better choice for interesting cocktail party conversation but index investing and asset allocation have always been the most important factors for worry-free, effective investing. Writing in his justly renowned book The Battle for Investment Survival, published over 80 years ago, Gerald Loeb says: “It is far better to let cash lie […]

Buy and hold, asset allocation, rebalancing

  One of the Monday Morning Millionaire Program members’ habits is to buy and hold. There is no evidence to show that market timing is useful. Another one of the members’ habits is to rebalance to a personal asset allocation when the market goes either up or down by a certain percentage. What is that percentage? […]