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March 2013 Fund Category Strength and Confidence

posted Mar 8, 2013, 3:15 PM by paul dunn   [ updated Mar 10, 2013, 7:53 PM ]
Fund Category Strength and Confidence - All Reallocation Plans
The chart below shows the Strength and Confidence for the prior period, for all reallocation plans, for the 10 fund categories with the highest Strength. Observation(s):
  • "Large" is again strong; 3 of the top 10 categories are a form of large company stocks.
  • Mid-cap is also part of the category designation for 3 of the top 10 categories. (Last month Mid-cap was in 2 of the top 10 categories, but this month Mid-Cap Growth also entered the top 10.)
  • If anything, March exemplifies why a diverse portfolio is commonly considered a good strategy for investing. The top 10 categories this month have focus ranging from large to small, foreign to domestic, value to growth, as well as bonds. 

Broad Fund Category Average Allocation History - Monthly Reallocation Plans ONLY
This chart further reduces the fund categories into one of six categories: bonds, blended funds, commodities, stocks, other, and unallocated (cash). For each category, the average allocation is shown for each month. Since we have included a category for unallocated (cash), the total allocation is always 100%.

The two charts below are the same chart, but different time frames. Both charts show the average allocation to (broad) fund categories. The first chart shows the prior 4 years data, while the second chart includes data back to 01-JAN-2002. Both charts are stacked bar charts, meaning the size of each color (fund category) indicates that categories average allocation during the period.

Since the end of the last month did not correspond to a quarter end, the only data included in these two charts are for monthly plans. (That is why the Strength and Confidence chart above includes bond related funds, while the charts below only includes funds that are primarily stocks.)

Observation(s):
  • This was the first time in our modeling history period (going back to 01-JAN-2002) that all MONTHLY plans have ONLY included funds that are primarily stocks. 

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