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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: pcyhuang who wrote (12997)	11/17/2011 7:21:48 AM
From: John Pitera	Respond to of 33421

Hi Paul, I apprectiate your ideas and insights but i have highly seriously reservations that portfoloio mmanagers are using as simple a metric as you suggest in their asset allocation models. Pimco for example is using a full range of deviceses that is by far more to to derive value

To: pcyhuang who wrote (12997)	11/18/2011 8:00:56 AM
From: John Pitera	Respond to of 33421

Paul,r thinking about my last response to your point, my response was deficient. If we looked at the rainbow of funds and investment allocation strategies there are so many distinct and different approaches. What you say about a 60 40 bond vs equity manager, yes that obviously what he's doing. Bill Miller's fund focused on equities and he had metrics for buying stocks that fit his model. Warren Buffett is a example of a Macro Manager who raised his cash levels when he did not find what he and Charlie Munger represented value. In 1998 or so they found value in buying a fairly big amount of Silver and physically obtained it. I don't believe they have yet to liquidate that holding. ( I could be wrong about that). John Mauldlin has talked about a fund where there are 5 CTA'a Commodity Trading Advisors who are using various trading strategies I'm not sure what markets each of the 5 is working with and what amount of system vs. active management they are using; interestingly they have found a way to wrap that into a fund that more like a mutual fund, and/or be used in an IRA. Obviously there are a large number of fixed income funds and invest in just fixed income, increasing cash is one of the key ways they add value, if they feel prices are going to go down. There is a sea of equity funds that are in equities and cash or near cash equivalents are used at times. It's a very broad and deep subject. I know you are well aware of this. John