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Monday links: asset allocation magic

Abnormal Returns

Strategy There's nothing magic about asset allocation. obliviousinvestor.com) Do stocks really become less risky over the long run? morningstar.com) Companies Google ($GOOGL) is investing $2 billion in AI player Anthropic. axios.com) Pharmaceutical companies are getting out to the consumer product business.

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When Should You Change Your Asset Allocation?

A Wealth of Common Sense

A reader asks: My question is how does asset allocation strategy change with your net worth? For example, should someone of the same age with $10 million in net worth have the same allocation as someone with $1 million? These huge pools of capital liked to call themselves “sophisticated” invest.

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MiB: Elizabeth Burton, Goldman Sachs Asset Management

The Big Picture

This week, we speak with Elizabeth Burton , managing director and client investment strategist at Goldman Sachs Asset Management. We discuss how the traditional “bucketing” approach of crisply defining asset classes can limit opportunities for asset allocators.

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The Bond Bear Market & Asset Allocation

A Wealth of Common Sense

I’m generally not a fan of completely rethinking your asset allocation just because you wish you would have invested in something else with the benefit of hindsight. Fighting the last war can be a damaging strategy if you’re constantly investing in the rearview mirror based strictly on performance.

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How Should You Choose Your Asset Allocation?

A Wealth of Common Sense

Following up on last week’s question about when to change your asset allocation, a reader asks a logical follow-up: For the average investor who is looking to do a mix of stocks/bonds, should they use some simple heuristic for bond allocation, such as bond% = 10 x interest rate, up to a max of 50%?

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The Mental Accounting of Asset Allocation

A Wealth of Common Sense

A reader asks: I’m a 30 year old living in Brooklyn making $175/year. I’m currently maxing out my 401k, Roth IRA, and have roughly $45k in a taxable brokerage account. Via my company’s ESOP, my company’s stock has become 20% of my brokerage account even after selling a good chunk steadily over the past several years.

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Personal finance links: freedom and wealth

Abnormal Returns

podcasts.apple.com) Asset allocation Small asset allocation shifts don't matter much in the long run. awealthofcommonsense.com) Why asset allocation matters. (podcast.moneywithkatie.com) Thomas Kopelman and Jacob Turner talk about finding your enough.