AOA: Be Strategic, Consider Trimming
Summary
- The S&P 500 is down 19% from its peak, and long-term bonds are 5% below recent highs, causing investor concern.
- iShares Core 80/20 Aggressive Allocation ETF has 80% in stocks and 20% in bonds, making it suitable for long-term growth with some diversification.
- Consider trimming AOA due to high stock exposure and potential for significant drawdowns; a dynamic de-risking strategy based on price action and volatility is recommended.
- Timing entries and exits using price action and volatility can improve risk-adjusted performance; current market conditions suggest caution.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of SPY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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