If you have experienced significant losses in the stock market over the last year and a half, are already in retirement, and are a little confused about what changes to make to your investments, reading Tara Bernard’s article in the New York Times will insure even greater confusion! Should you become more aggressive to combat the coming inflation, become more defensive to prepare for the possibility of a Japan-like anemic recovery, have a bond position equal to your age, ratchet your stock exposure down by 2% every year once you turn 60, further diversify by owning more real estate, have at least 30% in international equities, wade back into the domestic equity market over the next 2 years so that you avoid doing anything in a hurry, set aside 8-15 years in cash and bonds for food, utilities, and insurance, invest 10% of annual expenses in a bond ladder with equal amounts due every six months, purchase an immediate annuity…? Each financial planner interviewed for that article had a different opinion.
With so many investors reading articles like that in an attempt to stay informed it is no wonder so many are flat out confused.
Thank goodness for global tactical asset allocation strategies, like our Global Macro strategy, which provide a clear framework for allocating among a broad range of asset classes. Come what may, Global Macro is designed to be flexible enough to systematically adapt.
Click here for disclosures from Dorsey Wright Money Management.
Posted by Andy Hyer 
