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Don't marry a model

February 2011
In few disciplines are good models so important as in the field of investment. But a model that is useful for one purpose can be misleading or dangerous when used in a different context or for another purpose. This research focuses on the use of models for strategic asset allocation. In particular, this paper discusses the challenges of diversification and timing that are especially prominent at present.
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Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company.
Date of first use: February 2011
USI-8854
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