The Weekly View: Strategic Changes, Tactical Nuances
Comment of the Day

March 06 2014

Commentary by David Fuller

The Weekly View: Strategic Changes, Tactical Nuances

My thanks to Rod Smyth, Bill Ryder and Ken Liu for their excellent timing letter, published by RiverFront.  

Here is the opening:

RiverFront’s hallmark is our focus on the long-term ramifications of changing prices.  “Our Price Matters return estimates fall as prices rise and increase as prices fall, consistent with historical market behavior and common sense.  As a result, RiverFront’s asset allocation process imposes a ‘buy low/sell high’ discipline – a higher proportion of risky assets are allowed into the portfolio when prices are low and are reduced as their prices rise. (Strategic View, 2/5/14).

David Fuller's view

That is a sensible, uncomplicated strategy, vindicated by market history.  Those six lines above are well worth remembering, not least because crowd sentiment will take the opposite view at the market extremes.

Here is The Weekly View.  

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