Asset Allocation: Focus Risk on Long Duration Bonds
01/14/2011 0 comments
Our smart money indicator reports funds' aggregate asset exposure to U.S. equities and bonds. It is derived based on comprehensive analysis of top asset allocation gurus' recent asset exposure. We track two separate indicators: This is calculated weekly and the chart covers the last one year. For the week ending 1/7/2010, our proprietary model reported equity exposure for the two set of funds was 73% and 65%, respectively. Top 3 Moderate Allocation Funds (Smart Money) 481 Moderate Asset Allocation Mutual Funds (Pro Money) The theme remained largely unchanged last week - investor appetite for equity continued to stabilize and was driving inflow into the stock market. Improved economic data continued to feed positive sentiment in the equity market. As we pointed out in last week’s article, the low-interest-rate environment will not last for long and the Fed won’t be able to keep subsidizing borrowers at the expense of savers. Investors need to pay particular attention to duration when allocating their portfolios to fixed-income securities. With rising interest rate expectation in the medium term, bonds with shorter maturities should be a better bet. labels:investment,
Symbols:AGG,BBND,CIU,EEM,EFA,GSG,HYG,ICFI,IEF,IWM,IYR,JNK,MBB,MDY,MUB,PHB,QQQQ,SHV,SHY,SPY,TLT,VEU,VNQ,VWO,
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