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The Rationale for Global Tactical Asset Allocation
Published in Investments & Wealth Monitor, November/December 2009

For several decades, the notion of a normal portfolio has been central to institutional portfolio management. The classic 60/40 portfolio—60 percent in mainstream stocks and 40 percent in mainstream bonds—has been an unsatisfying norm that still anchors much of the thinking in the investing business. Many embrace the notion that market timing—profitable active shifts in an asset mix—is difficult at best and perhaps even reckless. Never mind that maintaining a 60/40 portfolio requires rebalancing—selling whatever has rallied and buying whatever has plunged—to stay the course. Can we not think of rebalancing as “tactical asset allocation lite”? Read the article.