On the topic of asset allocation, there is a lot of rethinking going on these days as evidenced by this article in the WSJ. The article highlights the differing views that exist in the industry. Some think bonds should have much more weight, some think alternatives should have more weight, and others think that it still makes the most sense to gives stocks the biggest weighting for portfolios with long-time horizons.
For us, we choose not to be painted into a corner. History makes it clear that it can be advantageous to favor different asset classes for long stretches of time, which is why our Global Macro product is designed to be as adaptive as it is.
Click here for disclosures from Dorsey Wright Money Management.
—-this articel originally appeared 9/3/2009. Given the tremendous worldwide turmoil of the past couple of years, I think it would have been impossible to figure out the correct long-term asset allocation. An adaptive policy still makes a lot of sense.
