I personally feel that tactical asset allocation cannot be employed consistently for most parts of the market.
However, this strategy can probably can be employed rationally at certain times when the market were obviously undervalued (1997/98, 2008/2009) or when it was highly overvalued (bubble in 1996/97).
Therefore, in the long investment period that you are in, it is the rare occasions when you will be fully invested (80% equity:20% cash) or fully out of (50% equity: 50% cash) the market. (My own asset allocation figures
).
Did you feel that the market was a bubble in 2008?
http://myinvestingnotes.blogspot.com/2010/04/wealth-maximising-strategies-for-your.html
Wealth Maximising Strategies for your Portfolio
http://myinvestingnotes.blogspot.com/2010/06/overview-of-investment-strategies-and.html
Investment Strategies and Theories You Must Know for Greater Investment Success!
http://myinvestingnotes.blogspot.com/2009/07/buy-low-sell-high-approach.html
Buy-Low-Sell-High Approach
However, this strategy can probably can be employed rationally at certain times when the market were obviously undervalued (1997/98, 2008/2009) or when it was highly overvalued (bubble in 1996/97).
Therefore, in the long investment period that you are in, it is the rare occasions when you will be fully invested (80% equity:20% cash) or fully out of (50% equity: 50% cash) the market. (My own asset allocation figures
). Did you feel that the market was a bubble in 2008?
http://myinvestingnotes.blogspot.com/2010/04/wealth-maximising-strategies-for-your.html
Wealth Maximising Strategies for your Portfolio
http://myinvestingnotes.blogspot.com/2010/06/overview-of-investment-strategies-and.html
Investment Strategies and Theories You Must Know for Greater Investment Success!
http://myinvestingnotes.blogspot.com/2009/07/buy-low-sell-high-approach.html
Buy-Low-Sell-High Approach
