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Money Market is moving upward in the pecking order.
What's your interpretation of this? RR mentions that MM can be a fund that is held irregardless.
His quote:
"The Market Leadership Strategy always has two holdings with nominal weighting of 50% each. Based on the rankings, one of the positions can be a money market fund. This strategy will buy the top two (2) ranked funds and hold them as long as they are ranked as a top-5 fund. If a holding drops below #5, the strategy will sell it and purchase the highest ranked style not already owned."
I assume its movement up in ranking makes it more of a priority to own.
Anytime I observe money market moving from last place upward in the pecking order, I feel some caution is warranted. Should it yellow or green light ... My personal thinking and action would to give strong consideration to reduce equities towards the low range within my asset allocation, if not already there.
Comments
His quote:
"The Market Leadership Strategy always has two holdings with nominal weighting of 50% each. Based on the rankings, one of the positions can be a money market fund. This strategy will buy the top two (2) ranked funds and hold them as long as they are ranked as a top-5 fund. If a holding drops below #5, the strategy will sell it and purchase the highest ranked style not already owned."
I assume its movement up in ranking makes it more of a priority to own.
Anytime I observe money market moving from last place upward in the pecking order, I feel some caution is warranted. Should it yellow or green light ... My personal thinking and action would to give strong consideration to reduce equities towards the low range within my asset allocation, if not already there.