Flav

Tactical Asset Allocation, Part I

Geoff: i hope you don't get tired of my posts, but i have to tell you, once again, great article!!!!!!!

Defining a Set of Core Asset Classes

Hello Geoff:

Thank you very much for your quick response. It does clarify.
I'm an economics and finance student, and i often have discussions with classmates and friends about several subjects regarding portfolio management. I must say that i have used some of your articles to support some of my arguments. I believe that for long term planning, there's nothing better than the analysis being made in your articles. But suppose that some investor or trader has a shorter time horizon; that person is willing to take on larger risks, in order to achieve larger returns. Would you still recommend this individual to diversify? Or given the shorter time frame and less risk aversion, should this investor have a more concentrated portfolio?

Again, thank you very much

Looking forward to read more of your articles

Defining a Set of Core Asset Classes

Hi Geoff. I made a question to you in other article that wasn't answered, so i will reformulate it in this one.
You say that hisorical data is of no use, but in order to obtain forward looking assets class combinations with QPP, you have to enter past information about those assets classes. So, as i asked before, to determine the correct weight asigned to each holding (the way that produces the highest return with a given level of risk), should the oldest available information be introduced? or is it sufficient with just a few years back?

Choosing Your Portfolio Risk Tolerance

Geoff:

Great article. Have one question for you: if you used historical data from a larger range than 5 years, let's say 20 years, would the assets' weight be more accurate? Or does the equal-weight still outperform?