FYI: Many target-date funds face a challenge in this long bull market for stocks: Their high exposure to equities could result in a sharp drop in their value during a major stock-market pullback.
To damp the possible impact of such a downturn, managers of many of these funds are diversifying into new types of investments—even as some also boost their stock exposure in hopes of getting better long-term returns and keeping up with competitors.
Regards,
Ted
http://www.cetusnews.com/business/Target-Date-Funds-Adjust-for-a-Stock-Pullback.SkWKz9LHUz.html
