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URL:  http://boards.fool.com/im-trying-to-figure-out-if-this-is-quottongue-31123376.aspx

Subject:  Re: Asset Allocation Date:  2/17/2014  4:45 PM
Author:  zol Number:  74286 of 78168

I'm trying to figure out if this is "tongue in cheek."

Bob,

I believe joelxwil is talking about two concepts:

(1) Momentum investing - "You need to be in those assets that are moving up and out of those that are moving down." - Mebane Faber published a paper in 2006 with a follow-up in 2013 describing how to evaluate different asset classes and invest in the ones that are more likely to outperform going forward based on their recent performance. The 2013 paper (Link: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=962461 ) shows how the strategy worked out since it was originally published. This strategy is followed in the Mechanical Investing board under QTAA - http://boards.fool.com/qtaa-013114-31095614.aspx

(2) Deworsification - "The idea that you should be in a little bit of everything is just really stupid." - The concept here is that spreading your funds too thin will not improve returns. A 50% increase in one of your holdings will make more impact if you only have 5 holdings vs 100, for example. This article (Link: http://news.fredericksbu