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They're both just someone's opinion. Doesn't really mean much to me in my investing decisions.
Maybe you can interpret it as 'skewing' an allocation toward/against something (and from that glean some potentially useful 'Street consensus' maybe) --- but as with most Wall Street 'analysis' you might be better off asking a Magic Eight Ball for guidance.
Huh? Article is exceptionally sketchy. I guess Simon's purpose was simply to define a term.
He alludes to "benchmarks." What is not very clear is that one's benchmark for a given asset varies tremendously depending on factors like goals, risk tolerance, age, etc.
At age 85, I'd consider a 50% allocation to equities to be overweight. At age 25, I'd consider the same allocation underweight. An investment or fund manager may set a benchmark for any asset, not just equities. Some managers benchmark gold, Treasuries, real estate, etc.
Most mutual fund Prospectuses lay out some type of benchmark for the various assets it may hold - though the exact terminology differs.
Comments
They're both just someone's opinion. Doesn't really mean much to me in my investing decisions.
Maybe you can interpret it as 'skewing' an allocation toward/against something (and from that glean some potentially useful 'Street consensus' maybe) --- but as with most Wall Street 'analysis' you might be better off asking a Magic Eight Ball for guidance.
He alludes to "benchmarks." What is not very clear is that one's benchmark for a given asset varies tremendously depending on factors like goals, risk tolerance, age, etc.
At age 85, I'd consider a 50% allocation to equities to be overweight. At age 25, I'd consider the same allocation underweight. An investment or fund manager may set a benchmark for any asset, not just equities. Some managers benchmark gold, Treasuries, real estate, etc.
Most mutual fund Prospectuses lay out some type of benchmark for the various assets it may hold - though the exact terminology differs.
investing: it means nothing....to me
See the one on McDonalds.