RSIVX WBMAX ARIVX PRPFX AQRNX MFLDX WAFMX SFGIX I just hope GPMCX is not the next.

Not arguing with your overall point, but I don't think WAFMX and SFGIX deserve to be on that list. Sure, they've lost a good amount of money on an absolute basis, but they have still performed much better than the rest of the emerging markets sector. Folks that "jumped on the bandwagon" for these funds are still better off than if they had put their money in almost any other emerging markets fund.

Completely agree and I apologize. They are five star funds and I can understand long term investors being in them. I just have a thing about holding losers over a long period of time as I want my capital compounding on a *consistent* basis. I realize though 3 years is not a "long period of time" for most investors. Unlike most here, I don't have a salary or pension to fall back on during the lean times.

@Junkster: referencing the sizable cash positions?

Don't mind me. Sometimes I can be an ornery cuss. Just a reference to all the funds most here tend to congregate in. Not exactly wealth accumulation machines the past several years. But most investors find comfort in being part of a crowd - or something to that effect so said Charles Mackay.

Short Answer: Slowly
Pie charts are a lot of fun. Used to play around slicing and dicing in the early years. Good way to visualize your allocation and determine what makes sense to you.
Past 10 years (excluding '08-'09) my only significant changes have been to gravitate slowly to a more hands-off approach. 15 years ago that was maybe 50% When the '08 debacle began it was around 60% (but I violated those guidelines in early '09 by loading up on global stock funds out of desperation.) Today I'm 80% hands off. The primary value (assuming there is any) is that it prevents me from tinkering around much and, hence, protects me from my own stupidity.
Not recommending any of this. Not an expert. Last couple years I've looked more like an idiot.
$29 oil? Who would've thunk?

FYI: (Scroll down to read Barron's Roundtable)
Jan 16 In recent years, bond investor Jeffrey Gundlach has been outperforming his rival Bill Gross. He has even been dubbed the "Bond King" by the media - a title Gross has held for many years. Now, Gundlach has replaced Gross on a high-profile investor panel.
Weekly financial magazine Barron's said on Saturday that Gross decided to quit its Barron's Roundtable. Instead, Gundlach, who has often been critical of Gross's investment calls, was added to the panel - which meets at the beginning and middle of each year - and he features prominently in the magazine's Roundtable latest cover story published on Saturday.
Regards,
Ted
http://www.reuters.com/article/usa-bonds-kings-idUSL2N1500FE

FYI: (This is a follow-up article)
An IT employee at Vanguard Group, Rebecca Snow asked for a month off in 2013 to care for her dying mother in hospice and her ailing father.
Not long after her leave, Snow was fired from her computer systems job, despite 13 years of raises and excellent reviews. Colleagues who took a family leave routinely suffered bad reviews, pay cuts, and firings, Snow alleged in a suit she later file
Regards,
Ted
http://www.philly.com/philly/business/homepage/20160117_When_workers_complain__Discrimination_lawsuits_accuse_Vanguard_of_targeting_workers.html

I customarily wait for year-end pay-outs and then, after the New Year, re-jigger. I like to feed profit from aggressive funds into more conservative funds. (Trim MSCFX for example, and put the proceeds in MAPOX. But not this year. No profit in MSCFX.)
"what is the best way to change your asset allocation, slowly over a period of a year or two or drastic changes over a period of a few months? I know it's not the best time to make those changes, but maybe I should wait for the market to settle down."
If you've any funds that generated profits from the past few years, find yourself an excellent bond fund that can serve as your CORE--- even if it's not labelled as such. I own DLFNX, but the big, fat sister--- DLTNX--- performs better, even through the recent fecal couple of weeks. Put profit into a core-bond fund, out of high yield. But don't necessarily CLOSE your HY positions.
Or, look at the whole thing as a longer-term process of DCA-ing into more ideal funds for your own Big Picture. Right now seems a decent time to buy. Or get into some good, currently cheap blue-chip individual stocks. Apple at these prices looks like a steal.
http://www.morningstar.com/stocks/xnas/aapl/quote.html
http://www.morningstar.com/funds/XNAS/DLTNX/quote.html
http://www.morningstar.com/funds/XNAS/DLFNX/quote.html
http://www.morningstar.com/funds/xnas/dodix/quote.html
http://www.morningstar.com/funds/XNAS/FTBFX/quote.html

Thanks for the input. Yes, I own DODIX, PIMIX and DBLTX as core bond funds. I do have a few funds with profits but have to be careful with large capital gains that have accumulated. I do understand your logic, however.

Hi @Willmatt72,
I think how you go about this is up to you with there being no wrong or right answers.
I usually make changes slowly. First I think you need to Xray your portfolio as a whole to see what you have and to see its diverfisication. Then you need to Xray each fund to determine its makeup. Then you can start subtracting or reducing positions adjusting your overall allocations here and there and then view this through Xray to view these changes. You might also study some funds that have an asset alocation and risk profile you are seeking to build.
Again, I'd go about these changes slowly no more than 1% per month in moving assets from one area to another. Example, if you are wanting to reduce you allocation to high yield start working this off slowly because now that they have been beaten-up of late they might recover some throuh an average out process. Then you need to decide where you want to put the one percent you are lightening up over in the high yield area. Do you have any convertible and bank loan funds? These are something you might wish to explore. I have them in my portfolio.
Good luck ... and, again my suggestion is to make changes slowly. Following the one percent per month rule over a years time you will have relocated 12% of the portfolio in a years time. Based upon a million dollar portfolio that's about $120,000.00 relocated each year. You might find that it will pay to keep moving some money around from time-to-time moving away from a static allocation towards something that offers some flexability.
In addition, I'd find a risk tolerance questionaire and determine what overall cash, bond and stock allocation is right for you. My broker sends me one to fill out and return about once annually, now that I am retired. I take a little more risk than they suggest in equities but I also hold more cash than they think I should plus I am a little light in fixed income over their suggested range. This might be something worth visiting.

I customarily wait for year-end pay-outs and then, after the New Year, re-jigger. I like to feed profit from aggressive funds into more conservative funds. (Trim MSCFX for example, and put the proceeds in MAPOX. But not this year. No profit in MSCFX.)
"what is the best way to change your asset allocation, slowly over a period of a year or two or drastic changes over a period of a few months? I know it's not the best time to make those changes, but maybe I should wait for the market to settle down."
If you've any funds that generated profits from the past few years, find yourself an excellent bond fund that can serve as your CORE--- even if it's not labelled as such. I own DLFNX, but the big, fat sister--- DLTNX--- performs better, even through the recent fecal couple of weeks. Put profit into a core-bond fund, out of high yield. But don't necessarily CLOSE your HY positions.
Or, look at the whole thing as a longer-term process of DCA-ing into more ideal funds for your own Big Picture. Right now seems a decent time to buy. Or get into some good, currently cheap blue-chip individual stocks. Apple at these prices looks like a steal.
http://www.morningstar.com/stocks/xnas/aapl/quote.html
http://www.morningstar.com/funds/XNAS/DLTNX/quote.html
http://www.morningstar.com/funds/XNAS/DLFNX/quote.html
http://www.morningstar.com/funds/xnas/dodix/quote.html
http://www.morningstar.com/funds/XNAS/FTBFX/quote.html

Obviously, the past few weeks have been a reality check for investors who thought they had the proper asset allocation for their portfolio but were wrong. I consider myself part of that group. Multiple years of gains can make one complacent and oblivious to the downside, especially when it hits hard. I have a fairly large portfolio (just about 7 figures) and my asset allocation is about 40% equities, 50% bonds and 10% cash. However, I realize that my equity portion is too aggressive and my bond weighting is geared more toward high yield bonds. So, my equity portion feels more like 60% equities, which is way too high for me given that my goal first and foremost is a low risk, income oriented portfolio. With a million dollars in my portfolio, I would be happy with 3-5% returns on average over the next 15 years, when I hope to retire.
My question is - what is the best way to change your asset allocation, slowly over a period of a year or two or drastic changes over a period of a few months? I know it's not the best time to make those changes, but maybe I should wait for the market to settle down.

Yes, it is that uncertain feeling until it proves itself years later in 2000 and 2007. That is one reason having cash give you that option. What has Warren Buffet bought lately?

Good point; you're right that it's an assumption. I'd forgotten that it was one that I made early on, but it's made so much sense over the ~ two years I've owned it that I've obviously started treating it as fact.
The mortgages are non-agency, which implies lower ratings, the % of muni holdings has pretty much tracked the % of IG (see now, for example, 40-ish% munis, 40-ish% IG), and the rate sensitivity led me to assume the same. Doesn't mean it's exactly 1:1, but overall, I've perceived that as the pattern that reconciles the NAV behavior and yield of the fund.
Just mho - AJ
P.S. I'll try to remember to call 'em tomorrow and see what they say. I've talked to an analyst or manager there twice but can't recall if the IG-junk breakout was a topic.

Had this discussion before but with 50% B credits or lower and near 50% in Munis PTIAX should be included in a high yield muni discussion.The fund keeps chugging along.
https://www.google.com/finance?q=MUTF:PTIAX&ei=MNKWVrneEpeSefmYudgO
http://www.ptiafunds.com/images/website/documents/fund-documents/ptiax_factsheet.pdf

A bit more muted returns compared to the open end junk munis. But agree TSP-Transfer it has been excellent over the years and very trend persistent with low volatility. It may have a place in my portfolio someday were I to spend less time obsessing over the markets. For now, the short term redemption fee is the deal breaker.

Hi Guys,
Maybe yes, maybe not so.
The January effect is a correlation that has not been especially prescient in the last few years. If you search hard enough some correlation will be discovered. This could be a false random success. Buyer beware.
I addressed this issue on MFO a few days ago and added the dimension of biased reporting. You might want to access it here:
http://www.mutualfundobserver.com/discuss/discussion/25326/honesty-trustworthiness-and-the-new-year#latest
We all are a little guilty of seeking conformation data. Enjoy.
Best Wishes.

So, you're expecting a couple of years to go by, before PRSNX produces? I've not been in very long, and it's below the break-even line for a year, but the 5-year result is not terrible, at 3.41%.

The top court in New York is the Court of Appeals. See recent obituary of widely respected Chief Judge Judith Kaye this past week:
"Judith S. Kaye, the first woman named to the highest court in New York and the first to serve as the state's chief judge - a job she held longer than any of her 21 male predecessors - died on Thursday at her home in Manhattan. ... Judge Kaye presided over the seven member Court of Appeals for nearly 16 years and also supervised the $2.5 billioin, 16,000-employee statewide judicial system, which she modernized by making jury service more equitable and convenient and by establishing boutique courts concerned as much with problem solving as with punishment."
Aside from those boutique courts and such, the lowest level trial court in New York State is Supreme Court.
@LewisBraham - that was my first impression, too. I haven't gone back to check whether the prospectus contains the usual verbiage about these conditions being satisfied when security is purchased (as opposed to being continuously satisfied).

@Crash Yes, hasn't DLFNX been a pleasant surprise? I expected more volatility. As for this offering, I've grown a little partial to my PRSNX, too, and just did some rebalancing into it to get my ave. share cost down, so I'm gonna watch and wait. As BobC correctly surmises (IMO), it's gonna take a couple of years to see if it's a winner, anyway.
Frankly, I'm much more interested in the upcoming infrastructure debt fund, although I was disappointed to learn, after reading the entire SEC filing, that it may not be possible to purchase retail shares via a direct investment with DoubleLine. I hope they change their mind about that before the fund launches. Maybe they are anticipating a relatively low demand? I can't explain it.

Gundlach ups currency risk for first time in five years
By Michelle Abrego 11 Jan, 2016
‘As of [last Tuesday], we bought some global, mostly developed, non-dollar bonds taking some currency risk in our bond fund. For nearly five years we’ve had nearly everything dollar denominated. We think the currency risk will turn a profit,’ he said.
http://citywireselector.com/news/gundlach-ups-currency-risk-for-first-time-in-five-years/a871960?ref=citywire_global_latest_news_list

Reminder
Jeffrey Gundlach Webcast tomorrow 1/12/2016
Mr. Gundlach will be discussing the economy, the markets and his outlook for what he believes may be the best investment strategies and sector allocations 2015.
Tuesday, January 12, 2016
1:15 pm PT/4:15 pm ET/3;15 CT
Click Here to Register
https://event.webcasts.com/starthere.jsp?ei=1084870
From citywire:
‘A little more dovish on the minutes is favorable for non-dollar on the margin,’ Gundlach told Citywire Americas in New York.
And today from a Fed Member
Markets | Mon Jan 11, 2016 9:55pm EST
Fed's Kaplan: four hikes not a sure thing in 2016
Dallas | By Ann Saphir
"This is an unusual start to the year, obviously," Robert Kaplan, the Dallas Fed's new president, told reporters after a talk here.
Concern about slowing growth in China roiled world markets in August and forced the Fed to hold off raising interest rates in September. This year has started off with global markets again rocked by plunges in Chinese stock markets, a fall in the yuan and subsequent heavy intervention by the Chinese authorities to push the yuan back up.
"We went through this in August and September, we paused, we watched, we let events unfold, which is the right way to handle it, and we saw ultimately that underlying economic conditions remained intact and solvent," Kaplan said.
"There's no substitute for time in assessing economic data as it unfolds," Kaplan told reporters.
Kaplan said he is not sure there will be enough economic data before the Fed's next policy meeting in late January to justify raising rates then, but "between now and March I think there will be."
Kaplan's comments differ somewhat from those earlier in the day from Atlanta Fed President Dennis Lockhart, who said there may not be enough data even by March to make a call for raising rates.
http://www.reuters.com/article/us-usa-fed-kaplan-rates-idUSKCN0UQ06N20160112?feedType=RSS&feedName=businessNews

Thanks for sharing David.
Good stuff msf!
I actually think the folks at Whitebox did all they could to articulate their strategies. I never got the impression they wanted their investors to "Just trust us...," like the article suggests. Their conference calls and quarterly letters were straight-forward and insightful, often compelling, seemingly well intended.
Nor were their fees high. They eliminated their loaded share class. Certainly, room to do more, but still, pretty good, relatively.
Their strategies simply did not play out in the last two years, after they decided to "exit the Mr. Market bus."
As we discussed last March, they are in pretty good company.
Keep thinking maybe they were too clever for their own good, something David alluded to in his profile.
Yes, gonna need to get access to principals to better understand how it ultimately unraveled. We did try to get a phone interview for David with Mr. Redleaf, but Whitebox declined.
I'm honestly disappointing they were not more successful.

Think of it this way: You've worked your entire life at a job or a career if you hopped around. Then you're expected to trust your retirement--your golden years--to the stock market--something the best experts on the subject admit is a random walk. If you're lucky you do well as the market is rising when you retire. If you're unlucky and retire during a terrible crash, you're broke or at least struggling. Either way, the situation is largely out of your control. Meanwhile money managers collect their tolls on your assets regardless whether the market rises or falls. It's a heads I win tails you lose scenario.
There is something grotesquely unfair about that for someone who has worked their entire life and just wants now to rest and enjoy their remaining few years. This is why when I hear politicians saying Social Security should be invested in the stock market, I laugh. People are right to distrust Wall Street.
Yet I recognize Sauter has a point in the country we live in. That country is one where there isn't a strong social safety net and interest rates are near 0%. So the stock market is the only game in town. And for most people who don't have the time or ability to find good money managers, index funds are often the best way to go. They are the only way to prevent Wall Street from extracting its pound of flesh from their retirement funds.

FYI: GUS SAUTER: A couple of weeks ago, I went to the barbershop. As he was cutting my hair, my barber said that he believed the stock market was rigged, he didn’t trust it, and he wouldn’t invest in stocks.
Since I spent more than 25 years encouraging people to save and invest, I was disappointed to hear this expression of distrust of investing. More disconcerting is that many people, and perhaps a majority, feel this way. The financial crisis and a number of one-off fraudulent scoundrels have provided fuel for politicians and the media to attack Wall Street and create this feeling of distrust and even anger toward Wall Street.
Regards,
Ted
http://blogs.wsj.com/experts/2016/01/11/why-investors-need-to-stop-distrusting-wall-street/tab/print/