May 8 2015, 06:38 PM
QUOTE(Vanguard 2015 @ Apr 30 2015, 10:35 AM)
Doom and gloom predictions have been around for years. They were there before we were born and they will still be there after we leave this world.
We just have to practise asset allocation and do the best we can.
On a different note, I was surprised to see the amount of your investment. If I had knew, I would have advised you to diversify more. At least 6-8 equity funds and 2 bond funds. I believe you have zero bond funds now? If my assumption is correct, you have a super aggressive portfolio which is extremely vulnerable to the market forces. This may leave you open to panic attacks when the market goes down.
But all is not lost. You can re-structure your asset allocation later once it turn green again.
May the force be with you.
well 6-8 equity funds for diversification is really overdiversification.we cannot 'diversified'away from systematic risk even with 100 equity funds We just have to practise asset allocation and do the best we can.
On a different note, I was surprised to see the amount of your investment. If I had knew, I would have advised you to diversify more. At least 6-8 equity funds and 2 bond funds. I believe you have zero bond funds now? If my assumption is correct, you have a super aggressive portfolio which is extremely vulnerable to the market forces. This may leave you open to panic attacks when the market goes down.
But all is not lost. You can re-structure your asset allocation later once it turn green again.
May the force be with you.
suffice to say 70% TSM or large caps value+growth,25% small/midcap,15%small value would have been adequate.expense ratio for the latter 2 funds will be fairly substantial as churning or higher turnover rate than large cpas is not unexpected
as for asset allocation- risk tolerance time horizon investment goal etc would determine/decides the portfolio of the investor
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