Thursday, June 28, 2012

Doug Kass : A delicate Balance

Great summation by Doug Kass on the intricacies of managing money. Think for yourself what if you are wrong. Don't be brainwashed by advertisment telling you to invest 80% of your money into equities and what nots, if you are young and you can afford to make mistakes. It's not the way to run your money management.
We should aim for more balance and consistency in our portfolios. This means if, in a normal market environment a 60%/40% stock/bond fix is in line with your investment objectives and risk appetite, then a more uncertain investment backdrop (such as we face today) should have a stock/bond guideline of some lesser amount with a cushion of cash -- perhaps 45% stocks, 30% bonds and 25% cash.

1 comment: said...

Kass is correct. And if people had understood this back in 2008, a lot less money would have been lost in the markets