We trust that you have benefited from reading the current issue, which includes a focus on asset allocation-a key decision in the investment process. We will continue to spotlight the importance of asset allocation. In the May/June issue, William Sharpe presents "Adaptive Asset Allocation Policies," in which he discusses how the contrarian practice of rebalancing portfolios by selling outperforming assets and buying underperforming ones cannot be followed universally: Not everyone can be a contrarian. He offers an alternative approach whereby the asset allocation policy is modified in accordance with market movements-an intuitive line of attack that can be followed by most investors.
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