Asset Allocation and Tactical Portfolio Management

Experts will tell you that asset allocation is a key element to wise investing. But tactical portfolio management adds even more security to your portfolio.
By: John P. Dubots
 
July 26, 2011 - PRLog -- Asset allocation is a term used a lot by financial professionals.  It is one of those terms that can easily be misunderstood so allow me to define it.  Asset allocation simply means how your money is divided between different types of investments.

It is critical for investors to have a proper asset allocation because the market goes through drastic fluctuations.  Market experts might move from small-cap stocks to technology stocks to bonds to commodities, etc...  It is near impossible for the average investor to keep their thumb on the pulse of the market well enough to keep up with with proper strategy.  Doing so would take an incredible amount of time, research, and luck!
Smart investors should be exposed to a number of different asset classes at all times. Being diversified smooths out the market peaks and valleys. It also reduces the possibility of significant loss due to the downfall of any one sector.

That said, you still need to be strategic. Sometimes certain types of investments are more attractive than others. In those times, having a financial advisor experienced in tactical portfolio management is usually the best course of action.  The ability to move your assets in an instant can save you from double digit percentage losses during severe market swings. This is exactly the type of protection that tactical portfolio management offers.

Now, tactical portfolio management doesn’t mean trying to time the market perfectly every time.  What it does mean, however, is utilizing experience and market analysis to allocate your investments into areas that offer not only growth, but also security.  Protection of your assets is just as important as growth.   In fact, statistics show that “missing” the worst days in the market are far more important than “catching” the best days.

Developing your asset allocation is tricky. Many people will have varying opinions depending upon your age and level of income.  Truthfully, developing a specific formula for assets that “must” be invested in an exact manner is a dangerous proposition. It suggests a buy and hold strategy determined by factors other than market conditions (such as age of the investor).  Any major shift could result in dramatic loss.  Tactical portfolio management, while incorporating proper asset allocation, also provides the added security of making adjustments in that allocation instantly if conditions warrant it.

To further discuss the practice of tactical portfolio management and how it can impact your portfolio, contact John P. Dubots, financial advisor with Dubots Capital Management.  http://www.jpdcapitalmanagement.com  888-605-8363

Investment Advisory Services offered through John P. Dubots Capital Management, LLC, CA License # 0822926

http://www.youtube.com/watch?v=wN7oZwnmrSo



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John P. Dubots Capital Management, LLC is a Registered Investment Advisory firm located in Temecula, California. We provide our clients with financial services and access to products from many of the nation’s "leading" investment companies. Our representatives work hands-on with clients to help investors meet their financial goals. Before we make recommendations, we first need to fully understand your needs and goals. Together, we evaluate and plan for long-term wealth creation and estate preservation, making use of a wide variety of investment products. Our Clients consist of retirees, pre-retirees, individuals, sole proprietors, partnerships and corporations. We assist more than 150 individual and corporate investors to achieve their investment goals. We have been in business since 1991. We would enjoy the opportunity to discuss with you how to make your financial dreams a reality. http://www.johndubots.com
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Source:John P. Dubots
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Tags:Tactical Portfolio Management, Asset Allocation, Tactical Investment
Industry:Accounting, Financial
Location:Temecula - California - United States
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