ACTION POINT
ACT LIKE A CONTRARIAN AND SYSTEMATICALLY REBALANCE YOUR PORTFOLIO
ACT LIKE A CONTRARIAN AND SYSTEMATICALLY REBALANCE YOUR PORTFOLIO
- Periodically adjust back to pre-determined allocations
- Trim big winners
- Add to substantial laggards
READ: THE SECOND MACHINE AGE
READ THE SECOND MACHINE AGE: WORK, PROGRESS AND PROSPERITY IN A TIME OF BRILLIANT TECHNOLOGIES
CONSIDER AN EQUALLY WEIGHTED INDEX ETF
CONSIDER AN EQUALLY WEIGHTED INDEX ETF
- Equal dollar weight to all stocks in S&P 500
- Primary advantage over market-cap weighting is underweighting of potentially expensive mega-cap stocks and overweighting of smaller cap stocks
IF YOU WANT TO BEAT THE MARKET, YOU HAVE TO DO SOMETHING DIFFERENT FROM THE MARKET
IF YOU WANT TO BEAT THE MARKET, YOU HAVE TO DO SOMETHING DIFFERENT FROM THE MARKET
- In less transparent, smaller, less liquid markets active managers can still make a difference
- A combination of index funds & actively managed funds in areas such as corporate & municipal bonds, small cap stocks, & internationally based companies still makes sense
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