Asset allocation

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
Topic Author
GBR
Posts: 2
Joined: Fri Dec 15, 2017 9:31 pm

Asset allocation

Post by GBR »

I have become intrigued with the idea of tilting, but only within index funds and really only as applies to midcap vs small cap +/- value, and emerging markets.

I currently have quite a tilted portfolio, 100% in US low-cost index funds (36% LC, 28% MC tilted to value, 30% SC tilted to value, and the remainding [6%] in "real estate" buried within equity index funds).

High-income professional in mid-30s with plans to stay all equities for quite awhile.

I recently read A Random Walk Down Wall Street and thoroughly enjoyed it. I am interested in reading more about asset allocation (in particular tilting - be it small/mid cap, value, emerging markets, or otherwise) and would be interested in your recommended books. I have seen mixed reviews on The Intelligent Asset Allocator (Bernstein) and All About Asset Allocation (Ferri). Would you recommend either of these books or any others?

Any help is appreciated.

Thank you!
dbr
Posts: 46137
Joined: Sun Mar 04, 2007 8:50 am

Re: Asset allocation

Post by dbr »

If you want to read about factor investing this book is available: https://www.amazon.com/Your-Complete-Gu ... +investing
rkhusky
Posts: 17654
Joined: Thu Aug 18, 2011 8:09 pm

Re: Asset allocation

Post by rkhusky »

If you are at all conversant with spreadsheets and programming, it is instructive to try to replicate the Fama-French analysis using their 3-factor data sets. It really gives you a sense of how simple the factor model is, how well it works in many situations, and also its limitations.
Topic Author
GBR
Posts: 2
Joined: Fri Dec 15, 2017 9:31 pm

Re: Asset allocation

Post by GBR »

Thanks for the recommendation...I will take a look at the book. I wish my spreadsheet/programming skills were better, but they are sadly lacking.
Thesaints
Posts: 5087
Joined: Tue Jun 20, 2017 12:25 am

Re: Asset allocation

Post by Thesaints »

GBR wrote: Fri Dec 15, 2017 10:34 pm I have become intrigued with the idea of tilting, but only within index funds and really only as applies to midcap vs small cap +/- value, and emerging markets.


You are already very substantially tilted away from large caps and foreign stocks. How more intrigued would you like to be ?
User avatar
badbreath
Posts: 987
Joined: Mon Jul 18, 2016 7:50 pm

Re: Asset allocation

Post by badbreath »

I would recomend All About Asset Allocation (Ferri), its a good read.
“While money can’t buy happiness, it certainly lets you choose your own form of misery.” Groucho Marx
Hukedonfonix4me
Posts: 156
Joined: Thu Oct 13, 2016 3:00 pm

Re: Asset allocation

Post by Hukedonfonix4me »

Here is a great thread discussion you may enjoy:

viewtopic.php?f=10&t=193537

:beer
"While some mutual fund founders chose to make billions, he chose to make a difference." | -The Bogleheads' Guide to Investing
Post Reply