In this context we are referring to managing equities investments.
For most people using a
technique intended to give you the highest reasonable return for the
risk you are willing to take
is going to be the best option when managing equity investments. Modern
Portfolio Theory is
clearly the most widely accepted method one could use to accomplish
this objective.
There are times when individuals will go well outside accepted asset
allocation models for
good reason. Employer Stock Options, discounted Employer Stock
programs, and ESOPS are
some situations where “over weighting” may make a great
deal of sense. For the rest of your
money, you should consider that the market will deliver (non-guaranteed
of course) between
eight and twelve percent if you intelligently rebalance over the course
most persons investment
lives and the we need to plan accordingly and invest in a way as to
achieve this results in the
most efficient manner possible.
The following tools will help you get there.
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