Do you have your 24? – Part 6

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December 28, 2018
Do you have your 24? – Part 6

Image Copyright Ted Grussing Photography – Used with permission

Today we continue with our discussion of the 24 different asset classes and how they can help your portfolio weather the difficult times in the market. We have previously referred to the pack of 24 and have already named and defined six of the 24.

The next three asset classes are easy to remember, because it’s the same principle as real estate; it’s all about location, location, location!

Just as our domestic companies are divided into large, mid and small companies as well as Growth and Value we have other similar asset classes across the globe.

They are:

  • Foreign Large Growth companies
  • Foreign Value companies and
  • Foreign Small Growth companies

There is actually no accepted and definitive measurement for pure asset classes in Midsize Growth and Value or Small company value.

This is due to a lack of consistency in measuring capabilities. For example, all American made shoes use the same size table: a size 7 women’s shoe is the same in different states. However a size 7 women’s shoe is a size 5 in the UK, a size 38 in the EU and a size 24 in Japan.

Similarly, there is no uniformity in the scale used to measure foreign equities. So in addition to our previous six of the 24 pack we are adding 3 more you need to be aware of: Foreign Large Growth and Value and Foreign Small Growth.

These 3 asset classes are harder to find in 401(k) plans, but if you have them in your plan make sure you are using them in your mix. We will continue our discussion on the 24 asset classes and how they can help diversify your portfolio in a future segment.

Have a wonderful weekend and Happy New Year!