Practical Applications of Regime-Based versus Static Asset Allocation: Letting the Data Speak

Abstract

Changes in financial markets can happen quickly. Sometimes, the changes are brief anomalies, and sometimes they mark the beginning of a new financial regime. Such regime shifts present a major challenge to traditional strategic asset allocation.

In Regime-Based Versus Static Asset Allocation: Letting the Data Speak , the authors assess the various approaches to asset allocation under ever-changing market conditions and devise a new model that will provide investors with better long-term results than more static approaches.