Comments on: Three Types of Asset Allocation: Strategic, Tactical, and Core-Satellite – Which is Right for You?

By: Examine Your Attitudes Toward Money and Uncover Problems

Examine Your Attitudes Toward Money and Uncover Problems — Wed, 19 May 2010 13:41:44 +0000

[...] the market was down and only buy when things are doing good. Maybe you didn’t learn about asset allocation and took on too much risk. Or maybe you simply waited too long to even get started and now realize [...]

By: How to Rebalance Your Portfolio

How to Rebalance Your Portfolio — Mon, 26 Apr 2010 14:56:00 +0000

[...] people do a good job creating a portfolio with the right asset allocation strategy, but they often stop there. They set and forget. If you’ve been through any of the recent [...]

By: –› Credit Terrorist or Twisted Genius?

–› Credit Terrorist or Twisted Genius? — Thu, 04 Feb 2010 13:29:17 +0000

[...] Three Types of Asset Allocation: Strategic, Tactical, and Core-Satellite – Which is Right for You? [...]

By: Kate @ Very Nice Advice

Kate @ Very Nice Advice — Wed, 03 Feb 2010 11:37:41 +0000

Nice article; just researching ways to explain to a client – clearly and simply – the different approaches, and this hits the spot!
Thanks

By: 20 Cents from January 2010 | Balance Junkie

20 Cents from January 2010 | Balance Junkie — Mon, 01 Feb 2010 10:47:18 +0000

[...] X Finance posted a thorough discussion on Three Types of Asset Allocation: Strategic, Tactical, and Core-Satellite. This ties into our brief discussion of asset allocation in the recent RRSP Basics series. Which [...]

By: Neal A. Deutsch, CFP

Neal A. Deutsch, CFP — Thu, 28 Jan 2010 16:42:45 +0000

Great article and explaination. A few points to consider when you are out to determine your investment style: risk tolerence, time horizon, tax ramifications, liquidity, goals and objectives as well as other factors are key to determine before your allocation or style of investing. Your point of “overlap” is the most misunderstood defination of diversification: many people think by buying a number of funds they are diversified, not knowing that the internal portfolios of the funds are similar, thus defeating the concept of diversification.

By: Speculation

Speculation — Wed, 27 Jan 2010 23:16:22 +0000

Here is what Jim Rogers has to say in his newest video:

http://bit.ly/7aQ5n7

By: RetirementInvestingToday

RetirementInvestingToday — Wed, 27 Jan 2010 21:31:48 +0000

Personally I’m running and writing about a core-satellite strategy. I have my nominal strategic asset allocation which is moving more towards bonds with every year that I age.

I then run a tactical asset allocation to vary my stock fund allocations. This is based on using a long term stock market valuation method which takes the Real (inflation adjusted) Price and divides it by the Average Real Earnings from the last 10 years.

By: Pop

Pop — Wed, 27 Jan 2010 20:32:13 +0000

I agree that the traditional “strategic” method of asset allocation is the best way for most people, but if letting yourself deviate from that a little bit by doing the core-satellite approach makes you feel like you have a little more control, so much the better. I’ve seen studies showing that investors are happier when they feel like they have control of their performance (even if it’s bad). So I’d much rather see somebody achieve that happiness and limit the damage than commit everything to an active strategy.

By: 2 Cents @ Balance Junkie

2 Cents @ Balance Junkie — Wed, 27 Jan 2010 17:20:00 +0000

This is great information whether you’re a novice or seasoned investor. I like the idea that no single approach is right for everyone. Since I’m all about balance, I guess I favour the Core-Satellite approach,as it gives you the most flexibility. You can allocate whatever percentage you like to each component based on your time horizon and risk tolerance. I do, however, agree that you need to be aware of transaction costs and factor them into your calculations. Thanks!