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This Week: Adventures in Asset Allocation

by AAII Staff | June 18, 2019


A Quantitative Method for Asset Allocation

Conventional rebalancing readjusts the portfolio back to the predetermined target allocation for stocks. The quantitative method considers not only the target allocation but also the prevailing valuation of stocks and the relative valuation of bonds. More »

The Level3 Approach: Seeking Higher Returns by Going Beyond the S&P 500

AAII’s Level3 Passive Portfolio outperformed the S&P 500 for the first four months of 2019 largely due to the slightly stronger performance of the equally weighted exchange-traded funds (ETFs) overcoming the outperformance of growth-focused stocks this year. More »
		John Bajkowski


Insights on How to Manage a Concentrated Portfolio

Concentrated investing is investing in such a way that one is not relying on diversification to keep the effect of individual errors in one’s portfolio remaining tolerably small. As such, investing in a small number of stocks requires a focus on margin of safety and valuations as well as the ability to invest for the long term. More »


Words of Advice: Letter to My Grandchildren

Legendary investor Charles Ellis has spent over 50 years working closely with nearly 100 investing organizations, knowing many of the world’s most effective and successful investment managers. With the desire to share the invaluable education in investing he’s picked up over the years, he sat down to write an investment letter to his grandchildren. He crafted a message that would be appropriate at any time and in any economy or any stock and bond market, focused on long-term investing and assumed that his grandchildren would be consumers, not producers, of investment services. More »

Member Question
The target interest rate of the Federal Reserve is currently at 2.25% to 2.50%. Where do you think the target rate will be at the end of the year?
A) 1.00% to 1.25%
B) 1.25% to 1.50%
C) 1.50% to 1.75%
D) 1.75% to 2.00%
E) 2.00% to 2.25%
F) 2.25% to 2.50%

Be sure to vote on this week’s question for the opportunity to offer your insights on our open-ended question.

Previous Week’s Results
Which of the following is the more important investment goal for you?

Protect against major losses : 53%

Maximize growth/returns : 47%

Poll results are as of 9 a.m. (Central) on Monday. 1,369 respondents.

AAII e-book: Portfolio Building

		“Easier said than done” is a common saying that applies well to developing an overall strategy for your investment portfolio. The basic concepts are relatively easy, but they become more complex and less clear-cut when it comes to applying them to real-world situations. This e-book, available exclusively to AAII members, is designed to bridge the gap between theory and practice. More »

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