Popular in Course
verified elite notetaker
Popular in Business
This 1 page Document was uploaded by an elite notetaker on Monday December 21, 2015. The Document belongs to a course at a university taught by a professor in Fall. Since its upload, it has received 11 views.
Reviews for Hunter-William-Kowald
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 12/21/15
Hunter William Kowald Hunter Kowald Manage the stock portfolio While asset allocation may be the single most important determinant of performance, most investors still enjoy the action of picking individual stocks. Staying consistent with my approach to asset allocation, I also believe in a somewhat disciplined approach to stock selection and like to follow a three-point approach. First, I do not believe in market timing, so whatever allocation you designate for large cap equities, for example, should be invested solely in that asset class. If your personal investment objectives change, and you wish to revise your asset mix accordingly, that is perfectly fine; however, I do not advise clients to try to out-guess or time the direction of the markets. Refer to the chart on best- and worst-performing asset classes to see the potential perils. At the same time, I believe there is considerable risk in aggressively overweighting or underweighting particular sectors of the market. I’ll refer to the following table: 118 S&P Sector Approximate Tolerance Weighting Limits Basic industry 3.1% 2-6% Capital goods 8.4 5-12 Communications 9.8 6-15 Consumer cyclicals 3.0 2-6 Consumer staples 7.6 5-12 Energy 7.6 5-12 Finance 18.4 12-25 Health care 14.6 10-20 Retailing 6.8 4-10 Technology 17.3 12-25 Transportation 0.7 1-3 Utilities 2.7 1-6 Total 100.0% N/A
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'