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).
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.
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