In the past, our asset allocation has been successful as indicated by our past performance record. Our successful performance occurred in a generally favorable market climate over the past twenty years and it should not be assumed that recommendations made in the future will equal our past performance. Large capitalized companies entwined in the macroeconomic environment entail systematic risk. Small capitalized companies, which are not macroeconomic sensitive but micro economic or niche plays, entail unsystematic risk. A balanced portfolio usually results in less overall unsystematic and systematic risk.
Most institutions follow guidelines when investing monies.
Rating changes referencing our recommended situations are reported in our updates. The managers of these 100's of billions of dollars must answer to their shareholders and superiors. All of the mutual pension funds are required to issue quarterly reports to their respective shareholders. Near the end of the quarter, stocks which were down or close to their yearly lows, are usually sold by the institutions, causing even lower stock quotes. And stocks near their highs are purchased, thus enforcing higher quotes.