2014 Etf Strategies: 4 Leading Managers' Market Outlook

Building A Successful Investment Strategy For 2014





Money managers Frank Wan, Joseph Tatusko, David Kotok and Matt main page Reiner expect ETFs involving MLPs, Turkey, the Internet and dividend-paying companies... ViewEnlargedImage Historically, the obvious choice was to underweight stocks and overweight bonds to preserve principal. However, when yield is scarce and interest rate risk is mounting, further diversification and unconventional assets may be necessary to offset the market risk. Master limited partnerships, or MLPs, with significant ownership of America's energy infrastructure and an orphaned asset class has been gaining popularity for the following reasons: 1. Strong historical performance with low correlation to stocks and bonds; 2. high yield and stable distribution growth; 3. inflation hedge; 4. U.S. energy renaissance and increasing in energy exports; and 5. growing institutional interest.











where youre at in your work life), and your age. Changes in any of these three areas will mean you need to change your allocations and investment strategy. The more risk-averse investors, or those near retirement age, may want to have http://www.theelevationgroups.net/ a higher amount in bonds/cash, steering clear of too much equity, which makes for a practical investment strategy. On the other hand, risk-tolerant or younger investors may want to take a more aggressive approach and maintain a higher mix of equities in conjunction with less bonds/cash as part of their investment strategy. A simple rule that I found is more straightforward is to evaluate the weighting of the bond portion as a percentage of your total portfolio by using your age. If you are 30 years old, a prudent investment strategy would be to have about 30% of your assets in bonds/cash and up to 70% in equities. The cash portion allows you to take advantage of stock market weakness to accumulate additional positions. Now, say you are 50 years old.