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If you were way overweighted in consumer cyclical stocks and in retailers, reduce your allocation there.
If you are concerned about the market volatility, you should reduce your allocation to stocks.
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That may mean reducing your stock allocation and redirecting that money into fixed-income investments (your specific allocation will depend on how far away retirement is, your personal goals and tolerance for risk).
A good asset allocation can reduce your risk by just as much without forfeiting all chances at profit from the remaining half of your money.
So this might not be the best time to drastically overhaul your asset allocation strategy by reducing your exposure to stocks.
In this case, the switch in asset allocation strategy would have reduced your average annual returns to 8.3percentt from 9.2percentt.
An allocation to foreign assets reduces your risk.
I also recommend that they increase the fixed-income allocation and reduce the stock allocation by 1% each year once they reach 55.
The endowment aims to increase its cash position and to reduce its allocation to private equity and other funds that lock up money for significant periods of time.
Investors could reduce their allocation to bonds and bond funds over all, or shift from funds with longer-maturity bonds to funds that buy only short-term ones.
Stock prices fell as investors took profits and Abby Joseph Cohen, the influential stock market strategist at Goldman , Sachs recommended that her firm's clients reduce their allocation of stocks to 65percentt from 70percentt.
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