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At some point during that period, he said, a declining equity exposure makes sense.
They did not use that decline to reduce the recommended equity exposure of their portfolios.
As for investments, his advice is to "reduce equity exposure, hold gold — it's a quasi-currency".
Consider a market timer who has halved his equity exposure in anticipation of a market decline.
Professor Schleef said in an interview that he believes investors should set their equity exposure as high as comfort permits.
"Reduce your equity exposure over time and in the final five years put more money into cash," he adds.
Through extensive surveys, they found that many investors reduce their equity exposure before taking their summer holidays.
But if you do not, then you should reduce your American equity exposure in favor of foreign stocks.
They were seduced into increasing their equity exposure just in time for the bear market to resume.
The professors don't recommend turning conventional wisdom on its head and increasing equity exposure as people age.
As a result, the firm has raised its recommended equity exposure sharply.
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