Saturday, February 11, 2006

Accelerated Asset Allocation

In normal asset allocation, you set fixed percentages of assets. Then as prices fluctuate, you buy and sell to maintain the percentages. But sometimes you want to adjust the percentages. By accelerating, overbuying, and overselling, you can change the asset mix and take advantage of the more emotion-free part of asset allocation which avoids the perils of market timing.

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