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Portfolio rebalancing is a powerful risk management strategy which involves buying or selling investments to achieve a currently desired asset allocation. Rebalancing is one of the most under utilized and under appreciated aspect of Do It Yourself Investment Management.     The purpose of diversification is to reduce risk by holding investments that will behave [...]

Before identifying the five best investment themes in 2011 we need to review the overriding economic concept that is driving world markets. The concept of biflationary economies where inflation and deflation occur simultaneously, is a worldwide phenomenon. Assets that are owned are experiencing deflationary pressures while items we consume are rising in price. This makes [...]

Asset Allocation Management and risk management  analysis will be the key to successful investing in 2011. An assessment of the current long term investment environment is the first step. The last 11 years have seen two bubbles; the dot.com bubble, and the housing bubble. Both bubbles produced extreme stock market volatility. I believe we are [...]

The purpose of target date mutual funds is asset allocation by age. The concept is to provide investors a single fund to invest toward their “target date” retirement. A target date fund would become more conservative as it moved towards the target date, for example 2020 or 2030. In reality, these funds surprised investors with [...]