Amery Hospital 403B
All investment options are diversified mutual funds . Retirement plan information has been provided by employees.
Traditional asset allocation theory recommends investing in multiple asset classes of unrelated investment types, such as equities versus bonds versus cash. Typical asset allocation models are presented here for your reference.
Aggressive Moderate Conservative
 CAUTION: USE "PIE CHART ALLOCATION" AT YOUR OWN RISK. THE PROCESS IS NOT DESIGNED TO PROTECT YOU FROM DOWNSIDE MARKET RISK. IT IS THE WAY 401K PORTFOLIOS ARE TRADITIONALLY CONSTRUCTED. KEEP READING FOR A BETTER UNDERSTANDING.
Significant insights were revealed in January 2010 by one of the leading proponents of index investing and an icon of the academic community – Ibbotson Associates’ president, Peng Chen. In an interview with Morningstar discussing Modern Portfolio Theory and its dismal 2008 performance in protecting accounts, Mr. Chen said:
“…we also realized that one of the traditional measures in modern portfolio theory, in particular on the risk side, standard deviation, does not work very well…”
However, in the 2008 market all asset classes, except cash, were highly correlated and declined in value. This list shows which investment choices have been the strongest performers recently, relative to the choices available within the plan.
While past performance is not a predictor of future returns, it may provide you with some reassurance that your current investment selections remain within favored market segments.
Any employee using this relative strength listing as a tool for allocating a retirement portfolio should check quarterly for new ranking updates that may indicate a change in investment selection.
As of this date, our view of the markets favors domestic and international equities over fixed income and favors small company growth over large company or value. This plan does not currently offer a small company growth fund. However, the small company value fund is ranked in third place for recent performance.
Investor Resources, Inc.'s (IRI) investment committee's view of the markets changes over time with changes in the relative strength of sectors and asset classes. Periodically, IRI's investment committee may favor domestic and international equities over fixed income or favor small company growth over large companies or value.
We agree with behavioral finance research that investing success is more likely when you are not emotionally tied to your investments. Consider how much pain would have been avoided in the lives of those who were committed to Enron, Tyco, JD Uniphase, GM or Chrysler if they had an objective relationship with their stocks.
Diversification is still good process. We do not recommend investing in less than five of the available options as long as they rank higher than the money market. If money market is ranked #3, it implies 60% money market and 20% in each of the two higher ranked assets.
Your choices are limited to the investments approved by your hospital's plan trustees. We believe the asset listing was obtained from reliable sources. If there is an update to the available investment listing, please contact us at 800-317-9119 or Info@InvestorResourcesInc.com.
Fundamentally, we do not recommend investing in assets ranked below money market. Preserve your cash until the assets once again establish a positive bias in their returns and prices.
June 30, 2010
Investment options are ranked by the previous ten week's relative strength.
It is our opinion that investing success is more likely when you are not emotionally attached to investments. Consider how much pain would have been avoided in the lives of those who had a "buy and hold" commitment to Enron, Tyco, JD Uniphase, GM or Chrysler if they had maintained an objective view of their stocks and willing to let go of them in the midst of market decline.
CLICK HERE to see how asset rankings have changed through previous quarters and exposure to the 2008 market melt-down could have been avoided by implementing an asset rotation discipline.
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