It seems like this is always the question on everyone’s lips, but, of course, no one knows what the market will do. It might be a wise idea to maintain some flexibility. A recent article in Fortune makes the case for global allocation funds during uncertain times. Mina Kimes writes, “Under conditions like these, world allocation funds may have a distinct advantage. Rather than focusing on one type of investment, they are free to search the globe for opportunities and move nimbly in and out of different types of assets.”
The Systematic RS Global Macro portfolio, the Arrow DWA Balanced Fund, and the Arrow DWA Tactical Fund all use slightly different relative strength mechanisms, but all of them are global allocation funds. Right now, global allocation is a relatively fresh concept with U.S. investors, but I suspect the trend of globalisation may bring it more to the forefront in future years.
Click here to visit ArrowFunds.com for a prospectus & disclosures. Click here for disclosures from Dorsey Wright Money Management.
—-this article originally appeared 8/6/2009. Global allocation funds have indeed grown dramatically over the last couple of years. Increased accessibility to asset classes through ETFs may continue to drive the trend.
