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For example, a money manager may be buying just to get the asset allocation back to 60percentt stocks and 40percentt bonds.
Since February, Mr. McManus had been advising institutional clients to hold 75percentt of their assets in stocks, but he cut that allocation back to 70percentt last month.
Once the economy starts showing signs of real improvement — and as corporate bond spreads narrow — investors must reassess their appetite for risk and think about moving this ersatz allocation back into equities, Mr. Ankrim and Mr. Arnott said.
In year five, when the value of the stocks falls, he reverses the allocation back into stock.
He has since taken some profits on the Treasurys, perhaps a little early, cutting the allocation back to 27%.
He has taken profits in the Treasurys, perhaps a little too early, cutting the allocation back to 27%.
Similar(51)
A delegate from one of OPEC's Gulf countries earlier this month raised the possibility of increasing OPEC's output targets to help lower prices as well as to bring official allocations back in to line with actual supply.
To pay his bills, Sam had to look around for other ways to make money, so he did like everyone else and sold off his water allocation, leasing back what he needed to irrigate his vines.
Randomisation was carried out by an independent statistician and the coded allocations passed back to the DNAT data management team.
But they are asking that they return to a normal asset allocation and get back to being broadly diversified.
Without knowing how much allocation money came back and what they plan to do with it, we all have to just warily trust that it will all work out.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com