Re-balance Cycle Reminder All MyPlanIQ’s newsletters are archived here.

For regular SAA and TAA portfolios, the next re-balance will be on Monday, December 9, 2013. You can also find the re-balance calendar for 2013 on ‘Dashboard‘ page once you log in.

As a reminder to expert users: advanced portfolios are still re-balanced based on their original re-balance schedules and they are not the same as those used in Strategic and Tactical Asset Allocation (SAA and TAA) portfolios of a plan.

Please note that we now list the next re-balance date on every portfolio page.

Tactical or Strategic in Overvalued Stock Markets

An question often came up to us is that when to use a Strategic Asset Allocation (SAA)and when to use a Tactical Asset Allocation (TAA).  Strategic allocation strategies regularly rebalance a diversified portfolio that has a proper risk exposure (or allocation to risk assets such as stocks and REITs). Tactical allocation strategies can dynamically change a portfolio’s asset mix based on market conditions. In MyPlanIQ’s TAA, when an asset class exhibits a down trend, it is avoided. The purpose of doing so is to avoid big loss in a portfolio. 

A natural source to ponder this question is the valuation of asset classes or assets. Valuation is a natural link between what to buy and what to sell. 

The relationship between value and momentum has been explored before. For example, AQR’s Asness and others studied these two factors and found them negatively correlated (see Value and Momentum Everywhere). Similarly, “Global Tactical Cross-Asset Allocation: Applying Value and Momentum Across Asset Classes” explored how to apply both value and momentum together. 

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