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flyingelephant
Follower ○○

Asset Allocation

I had a question about asset allocation.  I have always used factor investing.  Small, value, momentum, and quality.  Growth was supposed to be the worst factor to be in, and I always stayed away from growth. 

I wonder if I should rethink that.

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4 Replies
FatKat
Participant ○○

Re: Asset Allocation


@flyingelephant wrote:

I had a question about asset allocation.  I have always used factor investing.  Small, value, momentum, and quality.  Growth was supposed to be the worst factor to be in, and I always stayed away from growth. 

I wonder if I should rethink that.


If this was 2016, I would have said yes, as it would have been a contrary play, but not now. If I had money to invest, I'd place it is a simple large cap index fund like the S&P 500.

flyingelephant
Follower ○○

Re: Asset Allocation

Thanks.   What is your reasoning for that conclusion.  

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FatKat
Participant ○○

Re: Asset Allocation

We could have another dip before trade issues amend, if the market picks up, and do and I think it will however, I think large growth stocks and mid-cap growth stocks, particularly tech, are very high now. On the other hand, Alphabet and Apple because they posted good earnings results; they are most represented in the S&P 500, are likely to continue to rise. Another reason, so many investors choose investing in the S&P 500, as well the 'Total Stock Market fund, so these stocks are highly bought.

 

At the same time, I do think a dividend growth fund would be also a good choice.

Just keep in mind, the market could continue downward, as it did last year. So, buying over time would be a consideration.

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flyingelephant
Follower ○○

Re: Asset Allocation

Thank you for your help.  

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