Tactical asset allocation's main advantages are risk mitigation during severe bear markets and enhanced returns in an upward trending market.
Individual bonds present risks that offer no compensating increase in expected return.
It depends on whether rates are rising during an economic expansion or not.
Historically, stocks have performed favorably during such periods.
The advisor's role is to help clients understand the type of environment where specialized asset categories such as commodities and precious metals will outperform.
Finra’s mandate that requires brokers to identify a client’s risk tolerance is based upon an academic, over-simplification of the real world.
It has become standard practice for planners to shut clients out of investment policy making.
We looked back at another 20-year period in the last century to see what the next 20 years might hold for bonds.